Consumers See Annuities As Answer To Top Retirement Worry: Survey – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Annuity News
Top Stories RSS Get our newsletter
Order Prints
October 31, 2018 Top Stories No comments
Share
Share
Tweet
Email

Consumers See Annuities As Answer To Top Retirement Worry: Survey

NEW YORK CITY – A new LIMRA Secure Retirement Institute (LIMRA SRI) study of annuity owners finds the top two reasons consumers buy annuities are to supplement Social Security/pension income and to receive guaranteed income payments for life.

“Our research consistently shows consumers are worried about running out of money in retirement – 67 percent of pre-retirees list having enough money throughout retirement as their top financial goal,” noted Jafor Iqbal, assistant vice president, LIMRA SRI.

Related stories

  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity

“Annuities are fundamentally unique investment products, offering some combination of guarantees – guaranteed income that investors cannot outlive, protection of principal from market volatility, or guaranteed death benefits for beneficiaries. As more Americans face retirement without the benefit of a pension and growing longevity risk, an annuity can provide peace of mind.”

This new research is included in the fourth edition of LIMRA SRI’s Retirement Income Reference Book. Conducted every three years, The Retirement Income Reference Book offers an extensive view of the retirement income market, as well as unique insights into consumer behaviors and perceptions.

Shift in Sources of Income

LIMRA SRI research finds that the primary source of income for those in retirement is expected to change. Today, Social Security and pensions make up the primary sources of income for 70 percent of retirees. This shifts significantly when looking at pre-retirees (ages 55 and older, not retired) and workers ages 40-54.

Less than half of pre-retirees (49 percent) and under a third of younger workers (32 percent) say they will rely on Social Security and pensions as their primary sources of income. Instead, they will primarily use savings from employer-sponsored retirement plans, IRAs and other savings vehicles to fund their retirement years. Four in 10 pre-retirees and more than half of workers, ages 40-54, (53 percent) expect their primary source of income to be from their 401k, IRA and other savings.

“While these savings platforms are good solutions for accumulating assets, they often do not offer a way to create guaranteed income that retirees say they want and need, noted Iqbal. “Working with an advisor to create a formal retirement plan, consumers can determine whether investing a portion of their nest egg into guaranteed income through an annuity is a good solution for them. Our research shows seven in ten retired annuity owners are more confident that they are more likely to afford their preferred retirement lifestyles - even if they live to age 90 or older.”

This October marks the fifth anniversary of the LIMRA LOMA Secure Retirement Institute. Since it was established in 2013, the Institute has been supporting the retirement industry by providing research and education in order to improve retirement readiness and security.

Older

Kelsey-Seybold Clinic Taps Prudential To Manage $413 Million In Assets

Newer

Henry J. Kaiser Family Foundation: Analysis – Workers Increasingly Have Access to Same-Sex Spousal Benefits

Advisor News

  • For some, nothing to fear from taking RMDs, professor says
  • Half of investors plan to work after retirement
  • Cetera to acquire Securian’s retail wealth business
  • Study: Education level should drive decisions on Social Security, annuities
  • Former California energy company exec given 5 years in prison for $15M investment fraud
More Advisor News

Annuity News

  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity
  • Producers stew as insurers slow to process life and annuity applications
  • Substitute teacher wins massive lottery drawing in North Carolina. ‘Too good to be true’
  • Brad Rhodes: An annuity product many have never heard of
More Annuity News

Health/Employee Benefits News

  • Nearly half of all gig workers have no access to health insurance
  • California offers health insurance for $10 a month. The deadline is days away
  • Amazon announces service to deliver medications to your door. Here’s how it works
  • COVID-19Another COVID ‘new normal’: more Californians dying at home
  • Seven sentenced in conspiracy to defraud federal health insurance programs
More Health/Employee Benefits News

Life Insurance News

  • Cetera to acquire Securian’s retail wealth business
  • What does Curtis 'Cousin Eddie' Smith know in Murdaugh case?
  • Alex Murdaugh's murder trial starts with cellphones, bullets
  • Prosecutors, defense argue guns, bad acts in Murdaugh trial
  • Lincoln Financial Group offers new, fully automated life product, WealthAccelerate
Sponsor
More Life Insurance News
The time is 05:34:01am test

- Presented By -

Top Read Stories

  • A Louisiana employer's health perks helped their workers lose weight. Here’s how.
  • US debt ceiling limit reached; Social Security, Medicare targeted
  • Former CEO of Texas beverage company sentenced to 10 years in prison for fraud
  • LETTER: FEMA flood insurance is all but worthless
  • Will ChatGPT, artificial intelligence replace financial professionals any time soon?
More Top Read Stories >

FEATURED OFFERS

Grow life insurance sales in 2023 with middle-market clients

Tap a new source for sales and referrals with Allianz Life Insurance Company of North America.

Don't Miss ICMG 2023

When the success of your business depends on making the right connections, ICMG is the place to be.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.