Interest in guaranteed retirement income on the rise

Good news for advisors: A new study finds that 50 percent of pre-retiree and retirees with at least $100,000 in assets are interested in converting those assets into guaranteed lifetime income for retirement.

The 2014 study, “Finding the Right Mix: LIMRA Retirement Income Attitudes and Preferences,” found that non-retired Americans, younger Boomers (age 50-59), and those with assets between $100K- $499K are most interested in converting assets into guaranteed lifetime income for retirement (chart).  

“Our research shows that these demographic segments are less likely to have a defined benefit pension plan and will have to rely on their own assets to create retirement income,” said Matthew Drinkwater, associate managing director, LIMRA Secure Retirement Institute.  “Our study found 7 in 10 retirees and pre-retirees say having enough money to last their lifetime is a top priority, and nearly two thirds want to remain financially independent in retirement.  Converting assets into a guaranteed income product, like an annuity, is a good way to ensure these goals are realized.”

Other findings from the study include the top concerns pre-retirees and retirees mentioned: