Older investors blame inflation and low interest rates as they worry about retirement income
Artemis Strategy Group conducted the online survey of 1,023 investors between the ages of 55 and 70 with assets between $250,000 and $2 million and no pension. Global Atlantic said this sample represents a critical group in transition.
The firm estimates that 7 million American households, or 12 million people in total, have between $250,000 and $1 million and have no pension.
The pension benefit
Sixty-eight percent of survey respondents said they work with finance professionals. But even though 88% of this group said they had discussed ways to minimize risk in their investment portfolio, only 28% said annuities were part of the conversation.
The study also found that annuity owners are more confident about retirement security than non-owners. Sixty-two percent said the amount of money they have saved for retirement will last the rest of their lives, compared to 48% of those without an annuity.
Forty percent of those without a pension said they don’t know if the money they have saved will last the rest of their lives.
Finally, 48% of annuitant holders said they were extremely or very comfortable with their strategy for protecting investment assets and retirement, compared to 33% of those without an annuity.
“With this survey data in mind, finance professionals should consider adding annuities to their practice and would benefit from understanding the unique strategies that annuities can provide to improve their clients’ bottom line,” said Nelson said.