Millennials are looking for certainty when it comes to retirement planning—those who are doing anything about it, that is. And what they’re doing, in increasing numbers, is opting for—wait for it—annuities.
Yes, the younger generation is going for what is often regarded as the old stodgy standby.
Well, according to a study conducted by the Indexed Annuity Leadership Council (IALC), mistrust is the answer.
Millennials in particular are distrustful of traditional saving options, including IRAs and 401(k)s, and they’re turning to the guarantees of annuities to ensure that what they’ve saved can’t go down in value.
While they’re by no means the only ones considering a savings vehicle that comes with a guaranteed income—43 percent of all respondents in the study said they were interested in annuities—they’re the biggest group to do so, with 52 percent saying that they’re “very” or “somewhat” interested in them.