There is some $9.5 trillion sitting either in IRAs, defined contribution plans or non-qualified mutual funds that may soon be looking for an investment option that provides a lifetime of guaranteed income.
And annuity insurers are well-positioned to capture that burgeoning market, says a new report by Conning Research & Consulting, "The Big Payout: Growing Individual Retirement Income Opportunities."
Breaking down the numbers further, Conning estimates that individual and group annuities accounted for 46 percent of all defined contribution plan assets as of the end of 2011. A nice percentage, but Conning says there is even more in play. It calculates there was another $7.3 trillion parked in IRAs and DC plans not invested in annuities, with an additional $2.2 trillion held in non-qualified mutual funds that were earmarked as retirement income.
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