The Hartford’s Guaranteed Retirement Income study finds that three out of five Americans (64%) say their employer’s 401(k) or other retirement plan does not allow them to turn their savings into guaranteed income in retirement or they are unsure if it does. Buy a large margin, those respondents say they would welcome the opportunity:
- Overall, 87% of respondents of all ages say they find it “very” or “somewhat” appealing to be able to turn at least a portion of their retirement savings into a guaranteed income.
- 95% of workers younger than age 30 say the same, the highest of any age group.
- The same sentiment was expressed by 90% of those ages 30-39, 89% of ages 40-49, 88% of ages 50-59, and 77% of age 60 and older.
“Our research shows that Americans, regardless of age, want the ability to create a guaranteed income for their retirement as traditional pension plans vanish from the scene,” Patricia Harris, assistant vice president of product management for The Hartford’s Retirement Plans Group, said in a statement. “Surprisingly, we also found that the farther retirement appears on the horizon, the greater the appeal of guaranteed income.”
The Hartford’s study surveyed 2,500 Americans ages 18 and older earlier this spring.
“Overall, the study confirms our own experience since January in offering Hartford Lifetime Income through employer-sponsored retirement plans across the country,” said Harris, the actuary who designed the patented investment option. “We see broad acceptance of lifetime income among 401(k) participants of all ages, even younger workers who are decades from retiring.”
However, The Hartford’s study did pinpoint some differences related to gender and income. For instance, women (89%) have a greater preference for guaranteed retirement income than men (84%).
Household income also impacts the level of appeal, although not in a linear fashion, according to the company. The concept of guaranteed retirement income appeals most to those with a combined annual household income of $50,000 to $74,000. A total of 92% in that demographic would like their employer to offer a guaranteed income option compared with 86% earning less than $30,000, 87% of those earning $30,000 to $49,000, and 84% earning $75,000 or more.