Annuity owners have higher levels of retirement confidence than those who do not own annuity, new research reveals.
The Insured Retirement Institute, Washington, D.C., published this finding in a new survey of Americans aged 50 to 66, the survey titled “Baby Boomers and Generation Xers: Are They on Track to Reach Their Retirement Goals?” IRI Commissioned Woelfel Research Inc., Fairfax, Va., to conduct the survey.
The report reveals that, among boomers who own an annuity, 53.4% are extremely or very confident they will have adequate income in retirement, compared with 31% who do not. Among Generation Xers who own an annuity, 49.4% are extremely or very confident, versus 31.2% who do not.
Annuity owners, the report adds, are more likely to engage in positive planning behaviors. Nearly 7 in 10 (69.6%) of boomers and 60.4% of Generation Xers completed a retirement savings need calculation. This compares with 44.3% of boomers and 34.0% of Generation Xers who do not own an annuity.
Likewise, more than 7 in 10 boomers (73.7%) and 6 in 10 (62.3%) Generation Xers who own an annuity consulted with a financial advisor. This compares with 34.8% of boomers and 29.7% of Generation Xers who do not own an annuity.