While annuity sales in the U.S. have been surging in recent months, interest among Canadians has remained tepid. Yet, some experts say there are signs that could soon be changing.
According to the latest data from the Secure Retirement Institute (SRI) in Windsor, Conn., U.S. investors snapped up US$67.9-billion worth of the guaranteed lifetime income products in the second quarter. That’s 39 per cent higher than the same three-month period in 2020 and the highest total quarterly sales volume of annuities since 2008.
Meanwhile, Canada’s annuities market “seems to have more of a static demand that’s not growing but also not declining,” says John Yanchus, tax and estate planning consultant with the sales enablement team at Canada Life Assurance Co. in London, Ont. “It has been fairly flat over the past several years. There are no huge spikes up or down.”