{"id":9731,"date":"2015-09-02T18:40:36","date_gmt":"2015-09-02T18:40:36","guid":{"rendered":"http:\/\/www.annuityfyi.com\/?p=9731"},"modified":"2023-02-14T21:26:02","modified_gmt":"2023-02-14T21:26:02","slug":"less-10-expect-annuity-income-retirement","status":"publish","type":"post","link":"https:\/\/www.annuityfyi.com\/blog\/2015\/09\/less-10-expect-annuity-income-retirement\/","title":{"rendered":"Less Than 10% Expect Annuity Income In Retirement"},"content":{"rendered":"

A recent survey taken on behalf of the Indexed Annuity Leadership Council (IALC<\/a>) asked more than 6,800 people with a wide range of wealth about retirement preparedness and annuity products. Insurance News Net\u2019s Linda Koco summarized the study results in her article \u201cAbout 1 In 10 \u2018Expect\u2019 To Rely On Annuities In Retirement.\u201d1 Nine percent of the Americans surveyed said that they \u201cexpect to be able to rely\u201d on annuity income as part of their retirement income.. Nearly half of those surveyed have an interest in the features offered by annuity products, but 26% don\u2019t have any money saved yet for retirement and 12% don\u2019t know where they will receive their retirement income from. This indicates they may need more information about saving for retirement, and creating a nest egg and a supplementary income source to fuel their retirement.<\/p>\n

In order by source, people expect to receive retirement income from Social Security, personal savings, a 401(k) plan, a pension and personal investments. Although the percentage of people who plan to receive income from annuity products is still small relative to these other sources, people are more likely to expect annuity income the older they get. Around one-quarter of those 70 and older expect income from an annuity while only 2% of 18-34 year olds expect annuity income. Younger people have their focus elsewhere and it may be difficult for them to project that far into the future whether or not they will need annuity income. There could also be a lack of awareness about annuity products in the younger generations. This could be another indication of a need for increased financial literacy.<\/p>\n

The study asked participants if they were interested in the benefits offered by annuities without actually using the word \u201cannuity.\u201d In total, 43% said that they were somewhat or very interested in a \u201cretirement savings account\u201d that allowed a set monthly premium payment, guaranteed payouts throughout retirement* without exposure to the stock market, and guarantees* not to lose your money. The youngest participants actually had the most interest in these features. Millennials aged 18-34 had the highest interest of 52%, while the amount of interest went down with each aging generation. This may be a result of their financial perspective, as forty-three percent of them said that they are somewhat or very (financially) conservative.<\/p>\n

The IALC said that fixed indexed annuities would likely appeal to Millennials because of their guarantee* not to lose money and other conservative benefits, while offering a potential for growth over the guaranteed interest rate. Even though their desires appear to match up with the features of annuities, only 2% of Millennials expect to receive retirement income from the products. For starters, this might be because this generation is struggling to save for their retirement at all. There is no retirement savings reported for 37% of Millennials and a quarter of them are in debt. Thirty-three percent of those with savings have less than $25,000 saved. While Millennials still have time to save, it\u2019s important that they understand the impact of saving early on their retirement financial stability. The IALC is working to inform this group not only about annuities, but about general financial literacy. They are pushing for the rest of the insurance and annuity industry to do the same. By using online tools such as retirement calculators, they could become better prepared for retirement. A balanced retirement approach can help ensure that individuals won\u2019t run short of money in retirement.<\/p>\n

Written by Rachel Summit<\/a><\/p>\n

Follow Rachel, aka Finance Mama, on Twitter<\/a> and Google+<\/a><\/p>\n

*Guarantees of annuities rely on the financial strength and claims-paying ability of the insurance company that issues them. Lifetime payouts may be a benefit of the base annuity contract, or may be offered through the additional purchase of a lifetime benefit rider.<\/p>\n

1 Koco, Linda. \u201cAbout 1 In 10 ‘Expect’ To Rely On Annuities In Retirement.\u201d Insurance News Net, June 22, 2015. https:\/\/insurancenewsnet.com\/innarticle\/2015\/06\/22\/about-1-in-10-expect-to-rely-on-annuities-in-retirement.html<\/a><\/p>\n

If you cannot access these articles on line, call 1-866-223-2121 to request a copy.<\/p>\n

This web page has been reviewed for compliance.
\nDocument reference: 1500369<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

A recent survey taken on behalf of the Indexed Annuity Leadership Council (IALC) asked more than 6,800 people with a wide range of wealth about retirement preparedness and annuity products. Insurance News Net\u2019s Linda Koco summarized the study results in her article \u201cAbout 1 In … <\/p>\n

Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55,17,710],"tags":[523,39,735],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/posts\/9731"}],"collection":[{"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/comments?post=9731"}],"version-history":[{"count":1,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/posts\/9731\/revisions"}],"predecessor-version":[{"id":25564,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/posts\/9731\/revisions\/25564"}],"wp:attachment":[{"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/media?parent=9731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/categories?post=9731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.annuityfyi.com\/wp-json\/wp\/v2\/tags?post=9731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}