Examining the Indices in Index-Linked Annuities

June 15, 2021 by Kerry Pechter

Relatively speaking, an indexed annuity was once as simple as a Schwinn bicycle with fat tires and a three-speed gear shift. The early contracts gave policyholders partial exposure to the growth of just three or four common indices: the S&P 500, the NASDAQ and the Russell 2000 or MSCI-EAFE.

Today’s indexed annuities are more like 21-speed mountain bikes.

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While 40% of the money that flowed into FIAs in 2020 went into hybrid indices, over half still went into the S&P 500 Index, according to Wink Intel.

Originally Posted at Retirement Income Journal on June 10, 2021 by Kerry Pechter.