As stock market indices hit historic highs, one would think variable annuity owners are also riding the wave of euphoria. However, this isn't the case as complaints are gaining in relative volume and regulators are aware of a mounting crisis.
According to the Wall Street Journal's Matthias Rieker, in 2012, the variable annuity was the only class of security for which arbitration claims increased with 220 cases filed, based on data from the Financial Industry Regulatory Authority (Finra). Last year, through November, 165 cases were filed which represented a 20% decline from the same period 2012; however stock and mutual fund cases dropped at a faster rate.