That's where payout annuities come in. Insurers view the product as a diversification tool. It's just the piece of money they'll need for an income guarantee. They can allocate the rest in liquid accounts. Jeff Botti, a spokesman for Nationwide Financial, Columbus, Ohio, predicted that the payout-annuity market will grow rapidly.
Individuals can become owners of a payout annuity in two ways.
For money that is not yet invested in an annuity, a prospect may buy an immediate annuity, which begins the payouts soon after purchase. Like annuities in the accumulation phase, payout annuities offer owners investments in either fixed general accounts or fixed and variable subaccounts. Longer Life Spans Outliving assets is a relatively new concern as scientific advances of the 20th century have extended life expectancies. At the public level, the questions are about how we can support all these people. It is now common for people to live 20 or 30 years or even longer after retirement, not only because of longer lives, but because of earlier retirements, added George, who has interviewed more than 6,000 elderly people over 25 years.