More than 60% of retirees would like to go back and plan differently for their retirement if they could, according to a recent study from Lincoln Financial Group—with the vast majority saying they wish they’d started saving earlier and saved more for retirement.
Other “would’ve, could’ve, should’ve” reflections include choosing investments that provide a steady stream of income, with 63% reporting they’d like to receive an automatic paycheck from their retirement assets; and planning better for the unexpected like inflation and volatility, with 85% interested in investing in solutions that protect them from losses during market volatility.
Lincoln Financial Group released this new data just ahead of Annuity Awareness Month, recognized thoughout June, to reinforce the role annuities can play in holistic financial planning as tools to help provide lifetime income and protect and grow retirement savings no matter how the market performs. Investors can learn more about annuities by accessing educational resources from the Alliance for Lifetime Income.
“There aren’t many opportunities for a do-over when it comes to retirement planning. Yet, two of the major concerns that retirees voiced in our study—guaranteed income and protection from loss—can be addressed with annuities,” said Tim Seifert, senior vice president and head of Retirement Solutions Distribution at Lincoln Financial. “With a record number of Americans set to retire next year, Annuity Awareness Month is a good time for investors to work with a financial professional to understand how and why incorporating annuities into their financial strategies can help them retire confidently without regret.”
With economic conditions remaining favorable for the individual annuity market, LIMRA recently reported the first quarter of 2023 saw the highest quarterly U.S. individual annuity sales ever recorded. LIMRA expects that individual annuity sales will remain strong in 2023, potentially challenging the record sales experienced last year.
For two decades, annuity sales hovered around the $200 billion to $250 billion range. LIMRA’s forecast suggests that protection products will continue to boost growth in the annuity market for the next several years. Although the product mix may shift over time, LIMRA doesn’t anticipate sales going back to those lower numbers.
Going forward, demographics will affect the future of annuities with more people reaching an age where they would consider purchasing one. The average age of an annuity buyer is in their early 60s with the majority purchased between ages 55–70. According to Oxford Economics, the U.S. population aged 65 or over is expected to grow by more than 8.3 million from 2022 to 2027.
“Overall, our research indicates that we can expect to see continued momentum in the individual annuity market as we move forward,” said Todd Giesing, assistant vice president, LIMRA Annuity Research. “The industry needs to continue to look at options to enhance the experiences for both advisors and customers through technology and process improvements to be able to meet the growing demand for annuities.”
SEE ALSO:
• In-Plan Annuity Market Will Grow Exponentially Over Next 2 Years: LIMRA
• Only One 2022 Financial Concern Tops ‘Having Enough Income in Retirement’