As 2023 winds down and the retirement planning industry looks towards a new year, research by annuity provider Athene reflects on attitudes around lifetime income products and their potential in 2024.
According to 2023 data from Athene, which surveyed 2,057 U.S. adults ages 18 and older, 26% of workers currently rely on employer-sponsored retirement plans as their biggest source of retirement savings, while 21% express confusion on what an annuity is.
The findings come as more workers consider the long-term impact of the current economy—69% of respondents in the Athene survey note that the market environment has led them to rethink their retirement savings strategy.
Guaranteed lifetime income options have increasingly trended upwards in the retirement industry over the past years, with more workers considering the tools due to market and economic anxieties. Research from Morning Consult for the American Council of Life Insurers (ACLI) found that 54% of 1,000 retirement savers surveyed are considering “a guaranteed lifetime income product that pays out like a pension,” due to today’s economy.
Furthermore, as the U.S. reaches its “Peak 65” in 2024, where an estimated 12,000 Baby Boomers are set to retire each day, more financial professionals are using the event to refer annuity products to clients.
Yet, smaller plan sponsors and their employees have previously been slow to adopt such features, either due to a lack of accessibility or skepticism surrounding the products.
The Athene data also underscores the benefits of seeking out guidance, especially as only 34% of respondents report working with a financial professional. Furthermore, over half (51%) say that have never used a professional for financial advice.
“The new year is a great time to set yourself up for future financial success,” said Mike Downing, chief operating officer at Athene, in a statement. “The value of working with a trusted financial professional to guide you on your retirement journey cannot be overstated.”
SEE ALSO:
- Next 12 Months Could be Tipping Point for In-Plan Annuities
- With ‘Peak 65’ Nearing, More Advisors Consider Annuities
- Economy has Retirement Savers Eyeing Guaranteed Lifetime Income, Financial Planning Options
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
