Annuity Satisfaction Plummets to 639/1000 - But Are Happy Customers Overpaying?

Customer satisfaction with annuities is plummeting — down six points to just 639 out of 1,000 in the latest J.D. Power survey — but the carriers with the happiest customers aren't necessarily offering the best rates today. According to J.D. Power, USAA leads customer satisfaction at 740 points for the second straight year, followed by Western & Southern Life (684), New York Life (675), Prudential (667), and MassMutual (661). Meanwhile, the survey found that 92% of American retirees worry inflation will erode their assets, making guaranteed income products increasingly attractive despite satisfaction challenges. At the bottom of the rankings, Security Benefit scored just 545 points, with Athene at 591 and Corebridge Financial at 595. [compare:A0001F,A000HT] But here's where satisfaction scores and actual product value diverge dramatically. While Athene ranks near the bottom for customer satisfaction (591 out of 1,000), their multi-year guaranteed annuities (MYGAs) are highly competitive in today's market. For instance, Athene's Athena Elite 7-year MYGA currently offers 4.90% guaranteed for the full term — a solid rate that outperforms many carriers scoring higher in satisfaction. Similarly, Global Atlantic scored below average at 638 points, yet their ForeCare 5-year MYGA delivers 4.85% guaranteed, demonstrating that customer service scores don't always correlate with product competitiveness. The satisfaction survey, based on responses from 4,682 annuity owners, weighted factors like trust and value for price most heavily, followed by service accessibility and ease of doing business. However, J.D. Power notes that declining satisfaction stems largely from "frustrations among newer clients early in the relationship and challenges with digital channels" — issues that may not reflect the underlying financial strength of the products themselves. This suggests that while companies like USAA excel at customer experience, rate shoppers might find better guaranteed returns with carriers that score lower on satisfaction but compete aggressively on yields. Discussion Questions: - Would you choose a 4.90% guaranteed rate from a lower-satisfaction carrier like Athene over a potentially lower rate from top-rated USAA? How much would customer service quality influence your decision on a long-term guaranteed product? - Given that satisfaction is dropping due to digital channel issues and early-relationship frustrations, should retirees focus more on the financial fundamentals (rates, carrier ratings, guarantees) rather than customer satisfaction scores when selecting annuities? Source: Money Talks News (Apr 1, 2026)

ok this seems reasonable

Thanks