KEY FINDINGS:
- 60% worry that they will run out of money from their employer-sponsored retirement plan during retirement
- 70% say they would consider adding an annuity to their employer-sponsored retirement plan if it was available
- Over half (54%) say they would pay a fee for an advice service to manage their annuity contributions based on their personal financial situation and retirement goals.
MINNEAPOLIS – April 21, 2025 – Participants in employer-sponsored retirement plans have strong interest in integrating guaranteed lifetime income solutions into their plan but need guidance in making their decisions, according to a new study* from the newly launched Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life).
The latest report highlights a significant concern among participants about outliving their savings. Most plan participants (60%) worry that they will run out of money from their employer-sponsored retirement plan during retirement, driving a strong interest in integrating annuities into their plans. Notably 70% indicated they would consider adding an annuity if available, with 79% of those who would consider adding an annuity preferring to contribute smaller amounts over time through payroll deductions.
Still, 30% of Americans contributing to an employer-sponsored plan say one of their top concerns is uncertainty if an annuity is the right fit for their personal situation. Most (54%) say they would pay a fee for an advice service to manage their annuity contributions based on their personal financial situation and retirement goals.
“As employer-sponsored plans become increasingly central to retirement savings, understanding participant preferences is essential,” says Matt Gray, Head of Employer Markets, Allianz Life. “We’re seeing that Americans want retirement income strategies in those plans that can help their savings last for their lifetime. The driving concerns vary among plan participants who will seek out specific product features that can address the risks that matter most to them.”
While 20% of plan participants ranked inflation as the primary risk to their retirement income from their plan , other concerns were still common. Market downturns (15%), major non health related expenses (14%) and health and long-term care costs (14%) were all cited as risks to retirement income from their employer-sponsored plan. These results suggest the importance of considering the various concerns held by participants in order to create a robust retirement income program.
The Allianz Center for the Future of Retirement offers rich insights and resources for financial professionals and their clients with Allianz Life’s signature research and deep experience in retirement risk management solutions, like annuities.
“Designing better experiences and enhancing retirement outcomes hinges on a deep understanding of retirement plan participant preferences,” says Meghan Farrell, Senior Manager, Defined Contribution Insights for the Allianz Center for the Future of Retirement. "By harnessing our research capabilities and the wealth of knowledge and experience at Allianz Life, the center strives to provide practical insights and drive innovative thinking to address key challenges facing retirement planning.”
*Allianz Center for the Future of Retirement conducted an online survey, the State of Lifetime Income: Participant Survey in November 2024 with a nationally representative sample of 2,488 respondents age 18+ who are currently contributing to an employer-sponsored retirement plan.
Annuities can help meet long-term retirement goals by offering tax-deferred growth potential, a death benefit during the accumulation phase, and a guaranteed stream of income at retirement.
The content provided in the study is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice. Allianz Life, its affiliated companies, and their representatives do not give fiduciary, tax, or legal advice. Allianz Life does not provide financial planning services.
Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company.
About the Allianz Center for the Future of Retirement
Addressing the complex challenges of retirement planning requires innovative thinking, grounded in data. The Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America, produces actionable insights and signature research to help financial professionals prepare for the future. Drawing on more than 125 years of experience in risk management solutions at Allianz Life and our history of innovation in annuities, life insurance, and ETFs (offered through Allianz Investment Management LLC), we provide exclusive insights to support financial professionals and their clients.
