The Annual Reset: Managing Annuity Investor Expectations

As financial professionals, it’s up to us to educate and guide our clients through the intricacies of annuities and help them set realistic expectations. One feature that often captures people’s attention is the annual reset, particularly in Fixed Index Annuities (FIAs).

It’s not uncommon for annuity owners to be disappointed when their annual statements show a lower renewal rate than expected. By demystifying the process, discussing how carriers calculate renewal rates and exploring strategies to communicate this process to clients effectively, you can better align their expectations and avoid disappointment.