Seventy-six million. That hefty number is the estimated number of baby boomers living today in the United States. We’ve heard a lot about how this generation — those born between 1946 and 1964 — has its own unique challenges when it comes to retirement planning, particularly since it can’t rely on pensions or even Social Security as much as prior generations. As a producer, it’s important to consider how annuities can and should be an important part of a boomer’s retirement portfolio.
You have likely already considered the benefits that annuities can offer to boomers, so it may seem like a novel idea at first. But there are solid reasons to focus on selling to this particular group. Boomers are at the perfect age to benefit from the consistent income stream that annuities can provide, among other benefits I’ll mention below. And, put simply, no other financial products have been developed at the moment that offer the unique value for investment that annuities do. As a result, annuities shouldn’t be overlooked as part of your selling strategy.
It’s important to remember that clients are looking to you to provide an asset accumulation approach that is reliable and will succeed no matter what happens in the stock market. Thus, your approach should include safe options that offer clients what they want most: stability. Because of this, annuities are a strong option that will earn clients’ trust and grow your business at the same time.
Why Baby Boomers?
While annuities offer benefits to clients no matter what their age, boomers are at the stage in their life where they are demanding greater principal protection. This growing demand largely stems from the fact that they are coming closer to the end of their working years, thus they are becoming more financially conservative and can’t afford to lose what savings they’ve accumulated. With their preferences shifting, there is a growing convergence between what they want and what annuities offer.