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February 25, 2025 - Nine months ago, we let readers know that the structured settlements industry reported its best year ever in 2023 thanks to improved interest rates and increased awareness about the value of this proven negotiation and claim resolution strategy.
At the time, we also shared that 2024 was on target to best its own 2023 record.
I'm pleased to report the year-end results are in and, as expected, 2024 now stands as the industry's best year ever with over $9.5 BILLION in structured settlement premium written, an 11.2% increase over 2023 results.
Worth noting: These results do not include all non-qualified (taxable) results or those using market-based structured settlements.
And while it's a very small sample size, based on our firm's activity in the first two months of the year, 2025 might even be better still. Including some carryover from 2024, we've already logged 44 settlements thus far in 2025.
We're off to our best year ever. Again!
Reasons for Continued Optimism
Aside from the continuation of interest rates remaining at or near levels not seen in over two decades, many view structured settlements as the safest of safe havens, offering security and peace of mind in an increasingly uncertain world.
A recent Bankrate survey revealed just how financially stressed everyone is across all demographics. When added to the stress of protracted personal injury litigation, it's easy to understand why people want to solidify their predictable future income instead of taking chances with the market. Job insecurity, too, is extremely high at this juncture with many respected financial prognosticators believing a major recession is long overdue,
It's a good time to choose safety.
On top of all that, the National Structured Settlements Trade Association reports that one of the largest life insurers in America, Athene (rated A+ by AM Best), will begin offering structured settlements later this year. This excellent news means that clients will soon have an additional market to consider when evaluating structured settlement options.
Retirement Red Zone Advice
Beyond structured settlements, we also offer income solutions for clients with their retirement income planning needs. Our May 30, 2024 newsletter was a fairly comprehensive treatise on retirement income planning and resulted in some clients recognizing the value of diversification they hadn't considered.
You'll especially want to pay attention to this Forbes article if you are in or near the "Retirement Red Zone" (the ten-year period spanning the five years before and the five years after retirement) and have a bond portfolio:
"Three Reasons Fixed Indexed Annuities Are
Better Than Bonds In Your Retirement Portfolio"
If you remain unconvinced after reading the Forbes article, upon request, I'm happy to send the following analyses and white papers from people who are a whole lot more knowledgeable on the topic than I am:
Barclay's: FIAs Compared to Bonds
BlackRock: Retiring with confidence: a case for fixed indexed annuities in accumulation
Retirement Income Institute: Protection as an Asset Class
I even have an analytical tool that can demonstrate the impact of assorted index strategies using 20 years of random returns based on Monte Carlo analysis. This dynamic tool is helpful in validating the impact various bond alternatives, fee erosion, and sequence of return risks have on your money.
Preaching and Practicing
I'll close with the reminder that I haven't just studied and talked about this stuff for nearly thirty-five years. I "put my money where my mouth is" as the saying goes. As I highlighted in last year's newsletter referenced above, I personally placed a significant portion of my own retirement funds into a NO FEE, NO RIDER CHARGE, ACCUMULATION ONLY FIA last year and have zero regrets.
Tax deferral, no fees, returns better than bonds, and zero chance of loss. What's not to like about that?
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