National Annuity Awareness Month is a great time to introduce and discuss the overall benefits of annuities to your clients.
Guaranteed income conversations take on added importance when discussing confidence among retirees regarding their savings. Given the tumultuous nature of the market in the last year, many more of your clients may look for risk control options.
Data from the 2021 Employee Benefit Research Institute (EBRI) Retirement Confidence Survey emphasizes the importance of guaranteed income options in retirement. It also reflects resilience in light of recent events that sent markets and the economy on a rollercoaster ride. About seven in 10 workers feel confident they’ll have enough money in retirement while eight in 10 retirees feel the same way. Of note, however, is that only about one-third are “very confident” they will have a comfortable retirement.1
Among those feeling less confident are individuals who found themselves jobless in the last year as a result of the pandemic. Six in 10 workers who experienced job loss say the pandemic negatively impacted their ability to save for retirement while only one in eight without job loss felt the same.1
In the wake of an unprecedented year, the latest study also released these findings:
- Only about one in three workers and retirees currently work with a financial advisor
- Approximately half of retirees say they retired earlier than expected
- 68% of workers believe they have the means to cover medical expenses
- 63% think they’ll have enough money to last their lifetime
These numbers leave a significant number of people who still don’t feel confident about their income in retirement. Perhaps the most startling survey finding is:
The fear of running out of money is real. But annuities can help provide the security that other investment options may not. While the majority of those who are already retired may not benefit from the guaranteed income that an annuity may bring, half of workers expect an annuity or similar product to be a source of income in retirement.1 Those findings present major opportunities for workers to take advantage of these products as they strategize for the future, and major opportunities for financial advisors to guide their decisions.
For additional resources to support your client conversations about annuities, explore smartriskcontrol.com. Here are some fast facts to help your clients better understand the capabilities and benefits of annuities:
- Fixed annuities are insurance products instead of investment products, so they earn interest instead of returns or gains
- Registered index-linked annuities feature earned interest linked to market performance, up to a cap
- Variable index-linked annuities combine diversification with protection, offering customized, guaranteed limits on loss
- Income annuities offer guaranteed lifetime income, which can help ensure that savings last as long as your client lives or through a chosen period of time
The better informed your clients are about annuities, the better they’ll feel about their future.
National Annuity Awareness Month is a great opportunity to give your clients the facts they need about annuities and the power of risk control. Learn about the wide range of annuity products that are available. Click the button below to access detailed annuity information!
1 Employee Benefit Research Institute, 2021 Retirement Confidence Survey, April 2021.