An Update on Variable Annuity Benefits & Drawbacks
The variable annuity market experienced tremendous growth over the past decade. The introduction of a product which guarantees lifetime income payments while providing the opportunity for market growth was precisely what many investors were looking for. Companies such as Prudential, MetLife, AXA, Nationwide, Jackson, and Transamerica rolled out product after product which generated billions of dollars in sales through financial advisor channels. The purpose of this article is to determine if these products are still working well for investors and to point out the challenges which the current market environment presents to the insurance companies which issue these variable annuity products. In essence, are the product offerings at the current costs worth purchasing? Or should investors be looking at other products and strategies to augment their retirement income?