MINNEAPOLIS – April 6, 2020 – Recent market volatility, combined with the passage of the SECURE Act, has put an increased focus on retirement planning, particularly guaranteed income products, which will now become more widely available as an option for those with employer-sponsored plans. New research* from Allianz Life Insurance Company of North America (Allianz Life®) indicates that plan participants have taken note and are interested in learning more about guaranteed income in retirement.
Findings from the study indicate that 77% of those who currently are enrolled in employer-sponsored plans would consider adding an option that offers guaranteed lifetime income. Fifty-nine percent indicated they would specifically consider adding an annuity.
Beyond product consideration, 61% of respondents say they are looking for more information on how annuities can be part of their plan. Coinciding with that finding, 60% of those surveyed are not sure of the benefits of having an annuity in their plan, which indicates a big task ahead for the defined contribution and insurance industries.
“People seem to want guaranteed lifetime income options as well as more information on these types of products, particularly during these volatile times in the market,” said Matt Gray, assistant vice president of Worksite Solutions, Allianz Life. “At the same time, there is low overall awareness of annuities, a primary product to help manage the guaranteed income risk. Plan participants are clearly starting to hear more about annuities, but the next step will be to provide them with relevant information so that they are able to make an informed decision as to which potential options are a fit for their given situation. Ongoing volatility will only serve to increase the urgency surrounding this need.”
Allianz Life conducted an online survey in March 2020 of 558 Americans age 18+ who currently have an employer-sponsored retirement plan.
Annuity guarantees are backed by the issuing company.
