Millions of retirees looking for a safe and certain income stream turn to annuities. According to these consumers, four annuity plans stand at the front of the pack, a new J.D. Power survey says.
Consumers say New York Life does the best job with annuities, followed closely by Nationwide. Fidelity & Guaranty Life and Equitable round out the top four companies that earned rankings higher than the industry average.
Out of a possible score of 1,000, the top four companies finished as follows:
- New York Life: 828
- Nationwide: 826
- Fidelity & Guaranty Life: 811
- Equitable: 808
The industry average score was 797. Seven companies scored below that benchmark, including last-place Brighthouse Financial at 760.
J.D. Power based its rankings on a survey of more than 2,500 consumers who have annuities. Customer satisfaction rankings were based on performance in five factors:
- Product offerings
It is worth noting that TIAA earned a score of 839 — higher than anyone else in the ranking. However, J.D. Power excluded TIAA from its ranking. (The company only serves people in academic, government, medical, cultural and other nonprofit fields.)
J.D. Power notes that in this year’s rankings, “customer engagement with provider websites and direct communications from their provider have increased considerably.” That has helped consumers feel more satisfied with their annuities.
However, customer satisfaction with their advisers actually has declined.
Looking for alternatives to a traditional annuity? One might be right under your nose, as we note in “The Annuity Everyone Needs — and Anybody Can Get.”
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