Boomers want annuities, they just don't know it
By National Underwriter
By Michael K. Stanley
Those nearing retirement are looking for investment vehicles that protect their savings while providing a steady income that is somewhat insulated from market volatility.
A recent study from the Allianz Life Insurance Company of North America (Allianz) suggests that despite record highs for the Dow and an overall stable market, consumers have been jaded by the recession and desire uncorrelated investments.
Allianz’s “2013 Transition Boomers and Retirement Income survey” found that 87 percent of transition boomers — those ages 55 to 65 — would rather invest in a financial product with a 4 percent return that is guaranteed than one 8 percent return that is subject to losing value due to market downturns. The feeling was higher among women with 91 percent versus 82 percent of men expressing the sentiment.
The qualities desired by transition boomers for an investment vehicle seem to correspond perfectly with annuities yet general knowledge of annuities is low with 38 percent reporting that they “have not got a clue” about the products. The majority of transition boomers were aware that annuities can provide the possibility of guaranteed income for life.
Originally published on LifeHealthPro.com