I hope you are all enjoying the Thanksgiving holiday with family and friends. Up here in New Hampshire it’s cool, wet and rainy so not a lot of folks are out walking around the neighborhood; I imagine most are snug inside enjoying the marvelous aromas coming from the kitchen.

I am happy to report this year I have not failed to post on this blog each month, as I intended. Just one month to go – think of that! Other professional goals I have not been as successful at but I did see improvement in 2024. Next year I will do better, I’m sure.

So to my topic: a symbol of today’s holiday is the cornucopia, otherwise known as the “horn of plenty.” I thought it a great image to encapsulate conditions in the annuity market, where we are again sure to set another annual record for total sales; we will certainly exceed $400 billion for the first time. Moreover our basket, if you will, is chock full of products for every preference and taste.

My feeling is we don’t need many more annuity designs – what we have is sufficient – in fact we could do with some trimming down of the complexity that has arisen in recent years. Industry players should seek to maximize concepts that have resonated with current clients, all the while looking for ways to attract new ones. The latter task will probably involve more marketing and educational efforts than anything else.

There’s reason to be of good cheer. The industry is experiencing very favorable conditions and has only just started to tap into the “Silver Tsunami” (not my term; I heard an analyst use it on one of the Q3 calls) of Americans reaching the traditional retirement age of 65. There will be intense competition from other financial firms, but annuity insurers and their partners are in a great position to capture those dollars.