NU Online News Service, Jan. 8, 2004, 1:47 p.m. EST – “Power boomers” may be more interested in investing retirement funds in fixed annuities than in variable annuities, according to data from Financial Research Corp., Boston.[@@]
FRC uses the term Power Boomers to refer to U.S. residents between the ages of 50 and 60 who hold at least $100,000 in investable assets and have some or all of their assets in 401(k) plans, 403(b) plans, 457 plans, profit-sharing plans or cash-balance plans.
When FRC researchers asked 570 Power Boomers about their interest in 10 types of retirement savings vehicles in September 2003, they found that 61% of the boomers were very likely or extremely likely to invest in the most popular vehicles, stock and bond mutual funds, while only 2% were very likely or extremely likely to invest in the least popular vehicles, hedge funds.
Fixed annuities ranked sixth, with strong appeal for 22% of the Power Boomers. Variable annuities ranked eighth, with strong appeal for 16% of the Power Boomers, FRC says.