Annuity Payments Hit Record $104 Billion With Retirement Surge

November 21, 2024 by Austin R. Ramsey

Insurance companies paid out a record $104 billion in annuity benefits in 2023, up 9% over the prior year as high interest rates and a surge in retirees fueled new sales, according to research by the American Council of Life Insurers released Wednesday.

More Americans are reaching retirement age than at any other time in history, culminating in a “peak 65″ in 2024, according to the Alliance for Lifetime Income. At the same time, access to traditional, defined-benefit pension plans that guarantee protected income in retirement continues to dwindle, down to roughly 15% from more than half of the private-sector workforce in the 1980s, Federal Reserve System data shows.

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Originally Posted at Bloomberg Law on November 20, 2024 by Austin R. Ramsey.