A golden age for gift annuities

The American Council on Gift Annuities reports that the most popular age for an initial gift annuity is the mid-70's. Because the Quiet Generation was born during the Great Depression and World War II, the number of babies was lower during both times of great distress. This Quiet Generation reached age 75 starting in 2005. Because of low birth rates for the Quiet Generation, the number of Americans turning 75 each year has been lower than previous generations for the past decade.

However, in 1946 the 15 million Americans who served in the military during World War II returned home and started families. As a result, the baby boomer generation (born 1946 to 1964) has nearly double the number of individuals turning 75 each year when compared with the Quiet Generation. Because the senior baby boomers are now 76, for the next two decades there will be a steady growth in the size of the primary gift annuity market. With a dramatic increase in potential annuitants, the coming decade is likely to be a golden age for gift annuities.

The American Legion’s Planned Giving program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.