Middle-class Americans are relying more on non-qualified annuities for their retirement peace of mind, even in the wake of a recession and stock market downturn.

A survey of annuity owners nationwide finds that 80% of non-qualified annuity owners have an annual household income of less than $100,000, according to The Gallup Organization and Mathew Greenwald & Associates research, performed in conjunction with the Committee of Annuity Insurers. Just 4% earn more than $200,000 a year.

Nearly half (42%) have household incomes below $50,000 a year.

A total of 79% of non-qualified annuity owners surveyed say they think annuities are an important source of retirement security and make them feel more comfortable in times of financial uncertainty, and almost all of them (90%) say they agree with the statement, “you have done a very good job of saving for retirement,” saying the words describe them well.

“This survey demonstrates that these Americans consider their annuities the answer to both sides of the fundamental retirement challenge, a method to accumulate retirement savings and a vehicle to turn their savings into a steady retirement income stream that cannot be outlived,” said Deborah Winston of the CAI.

The survey of 103 annuity owners was released as Congress considers providing tax advantages to those who convert a portion of their individual savings into an annuity. The Retirement Security Needs Lifetime Pay Act (H.R. 2748), in the U.S. House of Representatives, and the Retirement Security for Life Act (S. 1297) in the U.S. Senate would increase accessibility to lifetime annuities by creating a federal income tax exclusion for a portion of annual annuity income, which proponents say would create tax savings for middle-income Americans.

Exactly 83% of respondents intend their annuities to provide them with a financial cushion in case they or their spouses live well beyond their life expectancy.

Nearly the same majority (81%) plan to use their annuities to avoid being a financial burden on their children in their later years.

Most non-qualified annuity owners are female (58%) and the average owner is a retired 70-year-old woman with a moderate income. Most owners (69%) also are retired, which is up from 58% in 2005.

The owners’ average age also increased from 66 to 70 between 2005 and 2009. The owners of annuities remain loyal, with 93% reporting they still own their first annuity.

While most national polls show a decline in consumer confidence about retirement, more than half of annuity owners (55%) believe that they have enough or more than enough money to cover their financial needs in retirement.