Economic climate has retirement savers eyeing guaranteed lifetime income and financial planning optionsA new survey from The American Council of Life Insurers (ACLI) reveals 91% of respondents prefer the option to work with any type of financial professional who is offering products and services that meet their needs. View complete survey findings here.
WASHINGTON, May 25, 2023 /PRNewswire/ — New research shows retirement savers are eyeing guaranteed lifetime income products and financial planning options as key financial supports in the current economic environment.
Conducted this month by Morning Consult* for the American Council of Life Insurers (ACLI), the nationwide survey of more than 1000 retirement savers – pre-retirees 45 to 65 years old — finds 54 percent reporting today’s economy has them considering “a guaranteed lifetime income product that pays out like a pension.”
Respondents earning both below and above $100,000 annually expressed interest in guaranteed lifetime income products nearly equally. Hispanic and Black respondents, in addition to those identifying as “other,” reported more favorably to guaranteed lifetime income products in the current economic climate than White respondents.
The research also found 91 percent of respondents preferring the option to work with any type of financial professional who is offering products and services that meet their needs.
“Retirement savers are clearly concerned about inflation and the overall economy. Guaranteed lifetime income products, which life insurers offer through annuities, and access to financial planning options, are two ways retirement savers indicate they can address their concerns,” said ACLI President and CEO Susan Neely.
Additional findings include:
- Retirement savers agree that long-term planning is complicated, and that it is best to have many retirement options (66%).
- Retirement savers are thinking about the future. They nearly unanimously agree (95%) that it is important to have a financial plan for retirement.
- Concern about the future is high, especially given the current economic climate. Four-in-five (81%) report they are concerned about having enough savings to last through retirement.
- Retirement savers are interested in taking steps to protect their savings through retirement. Nearly three-quarters (73%) express interest in independently purchasing a guaranteed lifetime income product that pays out like a pension, including more than two-thirds who do not already have a pension (68%).
- Retirement savers want options when thinking about retirement. More than 90 percent (94%) agree it is important for Americans of varying income levels to have options when planning for retirement.
“This research informs the discussion around the Labor Department’s attempt to resurrect a fiduciary-only regulation. Before it was vacated by a federal court in 2018, the regulation hindered access to products and services consumers indicate in the survey that they want,” Neely said.
*Morning Consult conducted a nationwide, online survey of 1,003 employed adults planning for retirement between the ages of 45 and 65 on behalf of the American Council of Life Insurers (ACLI). The survey took place May 10 through May 15 and has a margin of error of plus or minus 3 percent.