The most recent retirement market analysis from LIMRA Secure Retirement Institute predicts that over the next 10 to 20 years and beyond, there will be an unprecedented migration of people and assets moving into retirement.
By 2025, says LIMRA in The Retirement Income Reference Book 2015, a reference that provides insights on the retirement market and that addresses the various facets of both planning and managing retirement income, a whopping 66 million Americans will leave the workforce and retire. That number is even more significant when one realizes that within the next 10 years, the number of retirees in the U.S. will increase by 40 percent from the current figure of 48 million retirees.
The skyrocketing number of retirees, largely from the Baby Boomer generation, will shift a considerable $25 trillion in assets toward retirement income, roughly double the amount available today. In addition, investors aged 60 and older control nearly 60 percent of all financial assets in the U.S.
In a LIMRA podcast, “Explore Opportunities in the Retirement Income Market,” Jafor Igbal, assistant vice president of LIMRA Secure Retirement Institute and author of the reference book, discusses key research findings and identifies emerging trends. In the podcast, Igbal identifies three important opportunities in the retirement income market for the industry in general and advisors in particular:
1: Guaranteed lifetime income solutions: More than 40 percent of pre-retirees are interested in converting at least some of their assets to a product that will assure a lifetime stream of income. The market for converting pre-retiree assets into future guaranteed income is considerable, estimated to be $575 billion. And current retirees who are seeking guaranteed income add another $180 billion to that number.