Key findings:
- 68% would like more information about annuities as part of their plan
- 67% would consider adding an annuity to their plan if it was available
- 66% worry they will run out of money from their plan during retirement
MINNEAPOLIS – July, 18, 2023 – A growing number of Americans are interested in adding an annuity to their employer-sponsored retirement plan like a 401(k), according to a new study* from Allianz Life Insurance Company of North America (Allianz Life).
In the last few years, interest in annuities as part of an employer-sponsored retirement plan has grown significantly. The study found that nearly seven in 10 (68%) would like more information about annuities as part of their plan. This is up from 62% in 2022 and 56% in 2021. At the same time, 67% say they would consider adding an annuity to their plan if it was available, up from 60% in 2022 and 59% in 2021.
“Americans are eager to have their plan sponsors add a guaranteed lifetime income option such as an annuity as part of their employer-sponsored retirement plan,” said Matt Gray, head of employer markets, Allianz Life. “In today’s economic environment, adding an annuity to a portfolio can help mitigate risks to a retirement strategy and improve outcomes.”
This shift is happening as Americans increasingly rely on defined contribution retirement plans sponsored by their employer to fund their retirement. More than three in four (77%) say having an option that allows them to build a protected foundation for lifetime income would increase loyalty to their employer, up from 74% in 2022 and 65% in 2021. The majority of Americans (72%) say that they expect most of their retirement income will come from money in their employer-sponsored plans. At the same time, 66% worry they will run out of money from their plan during retirement.
The Secure Act** opened the door for annuities to become a part of employer-sponsored retirement plans like a 401(k). Allianz announced that its Allianz Lifetime Income+® Annuity with the Lifetime Income Benefit was available in defined contribution plans nationwide in 2022.
*Allianz Life conducted an online survey, the 2023 Q2 Quarterly Market Perceptions Study in May 2023 with a nationally representative sample of 637 Respondents age 18+ with an employer-sponsored retirement plan.
** Setting Every Community Up for Retirement Enhancement Act of 2019, 29 U.S. Code § 1104(e)
