Here are seven top takeaways from the new PRIP study: Nearly all investors are interested in annuities.
1
More than 90% of investors believe protecting retirement income is important. Those with pensions decline considerably by age, resulting in an even stronger need and desire for protection among younger investors.
Gen X has an even stronger desire for annuities. 2 A vast majority of investors ages 45-54 (71%)
have some interest in purchasing an annuity as part of their overall retirement income plan and 22% are extremely interested.
Gen X is more financially vulnerable for
3 retirement than older populations.
7 Top Research Findings Show Americans Want to Protect Their Retirement
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Younger investors are turning to annuities at even higher rates. Here’s why. Investors are increasingly eager and interested in protecting their retirement savings plan through annuities, according to a new study by the Alliance for Lifetime Income and CANNEX. With Peak 65 in sight, the inaugural Protected Retirement Income & Planning (PRIP) Study shows that many investors, especially younger ones, are interested in annuities as a source of protected lifetime income they can count on to help supplement Social Security income. The long-tail effects of the pandemic, a challenging fixed-income environment, and historically low savings rates are all converging as retirement looms for millions of Americans. That realization has left many investors scrambling for solutions. “The pandemic triggered a retirement reset in people's minds, leading to this incredible demand today for the benefits of protected income solutions,” said Jean Statler, CEO of the Alliance for Lifetime Income, a nonprofit consumer education organization. When included as a key part of a retirement plan, annuities can help protect investors against the ups and downs of the market and guarantee monthly income for as long as they live.
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Pension ownership stands at 65% for investors ages 65-75 but drops with each younger generation. Only 48% of retirement investors ages 45-54 have protected income from a pension. The study shows a critical need for protected income from annuities, to fill the gap left by pensions. A large portion of investors (29%) admitted they do not know enough about annuities to be able to identify the benefits.
Younger investors see annuities as
4 a replacement for pensions
More than half of investors under age 55 (58%) embrace annuities as an alternative to pension plans.
A majority of investors with an
5 employer-sponsored retirement plan show interest in annuities.
6
Investors who are protected by an annuity and/or a pension are more confident in their ability to enjoy their retirement years
7
More than half of investors (56%) who have an employer-sponsored retirement savings plan—such as 401(k) and Roth 401(k) plans—are interested in investing in an annuity through that plan.
A whopping 92% of investors who are protected by an annuity, or a pension, feel confident about covering expenses in retirement (versus 79% of the respondents who are not protected.
Investors who have an annuity are more satisfied with their financial professional.
A striking majority (84%) of investors with an annuity are very satisfied with their financial advisor versus those who do not have an annuity (74%).
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