According to Robert F. Vickery, a Principal in DSG's Retirement Practice, "As we predicted in last year's study, variable annuities with
guaranteed minimum withdrawal benefits (GMWBs), particularly those with lifetime income options, have continued with their amazing growth and
innovation."

"At the same time, we're also seeing expanded interest in 'alternative' products such as life insurance or annuities with long term care riders or longevity insurance to help serve the needs of retirees. Combine all this with the expanding efforts of mutual fund companies, and it's clear that the retirement income market is about to get even more competitive."

The Study examined retirement income market activity, in order to provide a timely view of industry results, competitive behavior, product features and trends, and a good sense of current and future efforts to address the retirement income market opportunity. Once again, DSG significantly expanded this annual research to broaden the product coverage, with particular focus on products and solutions that are gaining ground in the retirement income market. This year's study also includes a closer look at the role of fixed immediate annuities and the surge of activity by mutual fund companies.

Selected findings include:

- 77% of variable annuity companies surveyed offer at least one product with guaranteed living benefit features, with GMWBs dominating this market.

- Currently, 91% of respondents with GMWBs offer the lifetime income benefit option.

- Most executives interviewed assert that annuitization should be a key element of most retirement income plans, and this income payout will most often be based on a fixed immediate annuity.

- Mutual fund companies will become a growing factor in the retirement income market, and perhaps the greatest challenge to insurance company penetration of this market.

- Industry-wide sales of immediate variable annuity (IVA) products have reversed their downward trend for the first time in 5 years, despite the fact that only 9 out of 16 IVA providers are actively marketing their product at this time.