Annuity Use Is Expanding, But Knowledge Is Limited, Advisor Says
December 23, 2019 by Karen DeMasters
Annuities are becoming mainstream even though knowledge about them among investors is still limited, said Len Hayduchok, president of Dedicated Financial Services and Dedicated Senior Advisors in Trenton, N.J.
“Annuities used to be a limited product with only a small market penetration, but the addition of riders for income, death benefits and long-term-care benefits to provide clients more value than pure growth have made them more popular,” said Hayduchok, an advisor and portfolio manager.
The riders come at a cost but provide the holder with more options when purchasing the annuity and more benefits over the years, he said, compared to just the deferred income or immediate income annuities available in the past.
The problem is that knowledge about annuities—even among those who own them—is not great, Hayduchok added.