Boomers and current retirees like the features that an annuity can provide much more than they like the term “annuity.”
Allianz Life Insurance Company of North America, Golden Valley, Minn., has published figures supporting that conclusion in a summary of results from an online survey of 3,257 U.S. adults ages 44 to 75. The survey was completed in May.
When asked to choose between putting money into an annuity-like product–one offering moderate growth, a monthly income guaranteed for life, and limited access to a lump sum–or putting money into a similar vehicle that provides total access but could run out of money — 56% chose the annuity-like product.
But 54% of the participants expressed a dislike for the word annuity.
When asked to choose between high returns and guarantees, 69% of those surveyed said they would prefer a product that was “guaranteed not to lose value.” Just 31% chose a product that aimed to provide a high return.
Between 58% and 60% of respondents in all age groups reported worrying about longevity, and 77% of participants ages 40 to 49 said they are more afraid of outliving assets than they are afraid of dying.
Other survey results:
- 53% of participants said their net worth dropped “significantly” in a short period during the recent market downturn.
- 43% of the participants said the value of their homes dropped.
- 41% said the market downturn convinced them that they were not as “in control” of their financial future as they had thought.
- 92% of the participants said they agree that there is a retirement crisis in this country.
- 51% of participants ages 44 to 54 said they feel unprepared for retirement.