GITNUX MARKETDATA REPORT 2024

Annuity Cash Out Time Frame Statistics

The average time frame for cashing out an annuity is approximately 7-10 years.

Last Updated: June 20, 2024

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In this post, we explore a myriad of statistics related to annuities, shedding light on various aspects of this popular retirement savings vehicle. From the level of confidence annuity owners have in maintaining their lifestyle post-retirement to the time frame for cashing out annuity investments, these statistics offer a comprehensive understanding of the annuity landscape in the United States.

Statistic 1

"93% of annuity owners are confident they can maintain their lifestyle in retirement."

Statistic 2

"52% of workers who want to retire within the next five years aren't confident they have saved enough to live comfortably."

Statistic 3

"About 1 in 4 Americans is using some form of annuity to save for retirement."

Statistic 4

"The median age of an annuity purchaser is 52."

Statistic 5

"It typically takes 1-2 weeks from the time of application for the annuity cash out to be processed."

Statistic 6

"Annuity withdrawal rates generally range from 10% to 20% per year."

Statistic 7

"Surrender charges for cashing out an annuity early can range from 7% to 20% in the first year."

Statistic 8

"About 75% of annuity contracts have surrender periods between six and eight years."

Statistic 9

"96% of insurers offer annuities with guaranteed withdrawal benefits."

Statistic 10

"The average rates for immediate annuities range from 1.20% for a 5-year period to 2.70% for a 10-year period."

Statistic 11

"Annuities currently make up approximately 8% of retirement assets in the United States."

Statistic 12

"In 2019, total annuity sales were $241.7 billion."

Statistic 13

"An average surrender period is between two and more than a dozen years."

Statistic 14

"In 2017, U.S. companies made USD 181.9 billion in annuity considerations."

Statistic 15

"Fixed deferred annuities have an average annual payout ratio of about 6%."

Statistic 16

"There are roughly 75 million Baby Boomers in America, and of those, only 41% own an annuity."

Statistic 17

"Annuity sales in the U.S. fell by 8% in 2018."

Statistic 18

"The average length of a surrender period on an indexed annuity is 10.79 years."

Statistic 19

"About 25% of traditional IRA holders in the U.S. are invested in annuities."

In conclusion, the statistics surrounding annuities provide a nuanced understanding of retirement planning trends in the United States. The confidence levels of annuity owners contrast with the uncertainty of many workers nearing retirement age. Annuities are a popular tool for retirement savings, with diverse features such as withdrawal rates, surrender charges, and guaranteed benefits. The data also highlights the significant market presence of annuities, with varying sales figures and ownership rates among different demographic groups. Overall, the statistics underscore the complex and multifaceted nature of annuities as a key component of retirement financial planning.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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