We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • First and foremost, consumers buy annuities to create retirement income

    November 22, 2018 by Insurance Forums Staff

    A new LIMRA Secure Retirement Institute (LIMRA SRI) study of annuity owners finds the top two reasons consumers buy annuities are to supplement Social Security/pension income and to receive guaranteed income payments for life.

    “Our research consistently shows consumers are worried about running out of money in retirement – 67% of pre-retirees list having enough money throughout retirement as their top financial goal,” said Jafor Iqbal, assistant vice president, LIMRA SRI.

    “Annuities are fundamentally unique investment products, offering some combination of guarantees – guaranteed income that investors cannot outlive, protection of principal from market volatility, or guaranteed death benefits for beneficiaries. As more Americans face retirement without the benefit of a pension and growing longevity risk, an annuity can provide peace of mind.”

    This new research is included in the fourth edition of LIMRA SRI’s Retirement Income Reference Book. Conducted every three years, research for The Retirement Income Reference Book offers an extensive view of the retirement income market, as well as unique insights into consumer behaviors and perceptions.

    Shift in sources of income

    LIMRA SRI research finds that the primary source of income for those in retirement is expected to change. Today, Social Security and pensions make up the primary sources of income for 70% of retirees. This shifts significantly when looking at pre-retirees (ages 55 and older, not retired) and workers ages 40-54.

    Less than half of pre-retirees (49%) and under a third of younger workers (32%) say they will rely on Social Security and pensions as their primary sources of income. Instead, they will primarily use savings from employer-sponsored retirement plans, IRAs and other savings vehicles to fund their retirement years. Four in 10 pre-retirees and more than half of workers, ages 40-54, (53%) expect their primary source of income to be from their 401k, IRA and other savings.

    “While these savings platforms are good solutions for accumulating assets, they often do not offer a way to create guaranteed income that retirees say they want and need,” Iqbal said. “Working with an advisor to create a formal retirement plan, consumers can determine whether investing a portion of their nest egg into guaranteed income through an annuity is a good solution for them. Our research shows seven in 10 retired annuity owners are more confident that they are more likely to afford their preferred retirement lifestyles – even if they live to age 90 or older.”

    Consumers prefer guaranteed lifetime income over a lump sum

    In other recent research, LIMRA SRI found that 53% of Americans ages 50 to 79 with at least $100,000 in assets would choose guaranteed lifetime income of $660 monthly over a lump sum of $120,000 when offered in a hypothetical situation.

    Data released in November found that when asked why they would take the guaranteed lifetime income rather than the lump sum, 57% said it was because they expected to live long in retirement and 46% said it was because it would provide them with peace of mind.

    Those who favor lifetime-guaranteed payments over a lump sum are generally not willing to change their preference when the value of the lump sum offered is increased. When asked to select the minimum value the lump sum would need to be in order for them to choose it over the guaranteed lifetime income, nearly half (46%) say that they would never switch to the lump sum.

    For those who chose to receive the lump sum, almost two-thirds say it was to maintain control over the funds and almost 3 in 10 say it is because they already have enough guaranteed lifetime income from other sources. LIMRA SRI finds that 36% of pre-retiree and retiree investors plan to use guaranteed lifetime income to cover their basic living expenses while using non-guaranteed income sources to cover the rest of their expenses in retirement.

    LIMRA SRI finds more than three quarters of consumers surveyed agreed that having guaranteed lifetime income gives them peace of mind. Comparatively, only 13% feel Social Security alone provides sufficient guaranteed lifetime income in retirement, which implies other sources of income must be leveraged for this purpose.

    About LIMRA Secure Retirement Institute: The LIMRA Secure Retirement Institute provides comprehensive, unbiased research and education about all aspects within the retirement industry to improve retirement readiness and promote retirement security. For information visit: www.limra.com/sri.

    Originally Posted at Insurance-Forums on November 14, 2018 by Insurance Forums Staff.

    Categories: Industry Articles
    currency