Factor #1: The Aging Trend

The U.S. Department of Health & Human Services reports, 39.6 million Americans were over age 65 in 2009, and there will be 72.1 million Americans over age 65 by 2030.Simple math can extrapolate that figure to "new 65 year olds" in ths country at a rate of:

• 1,500,000 each year (or)
• 125,000 each month (or)
•  4,166 each day

For retirees and pre-retirees who prefer to avoid going back to work again, principal protected financial products such as annuities are extremely attractive.

Factor #2: The "Disappearance of Interest Rates" Trend

Interest Rates are in the gutter, still, and we may be in the midst of the Japanese Tsunami. It is well known that Japan has had almost 20 years now of 0% interest rates and we could well be on this course as well.

Lifetime Income plans have been designed by annuity carriers to ameliorate this condition, by providing annuity plans that allow consumers to start a lifetime income at a point of their own choosing. Consumers must to pay an annual income rider fee that will guarantee them this set amount of future lifetime income.

This product feature, although confusing to the public at large, remains the largest driver of current annuity sales.

Factor #3: The Market Uncertainty Trend

Many retirees are scared of the market, despite its gains over the past 5 to 7 years.

Many Americans prefer to no longer subject themselves to the 30% to 40% market declines they have experienced in 2001 and 2007. There has been a steady erosion in market confidence amongst the populace.

Evidence of this phenomenon can be found not only in the increased sales of annuity products, but in the interesting phenomena of advice and encouragement on the AARP website that is encouraging seniors to keep working.