New Research Underscores Boomers’ Uncertainty, Lack of Product Knowledge and Importance of Working with Advisors

New American Retirement Survey Reveals Americans’ Top Concerns and Needs, and Opportunities for Financial Services Professionals

Scottsdale, AZ, Feb. 8, 2018 (BUSINESS WIRE) — When it comes to retirement, most Baby Boomers are unsure if they’ve saved enough and are concerned about running out of money. And while a majority recognize the importance of securing a source of reliable lifetime retirement income to supplement Social Security, many are in the dark when it comes to identifying the right financial products to provide it. These are among key findings from the American Retirement Survey, commissioned by Annexus, a leading designer of fixed indexed annuities, life insurance, and other index-based wealth-management products.

Annexus commissioned the American retirement survey from Forrester, one of the world’s leading research and advisory firms, to survey Americans aged 50 to 70 on their most pressing financial concerns, the steps they’ve taken to prepare for retirement, and the value they place on working with a financial advisor.

“Annexus sees a tremendous opportunity for the financial services industry, not only to educate clients, but to ensure that as fiduciaries we understand which products are best suited to address clients’ top concerns.”
Ron Shurts – Co-Founder of Annexus

Shifting Retirement Landscape

“We’ve seen a massive shift in the retirement landscape that has forced Baby Boomers to become largely self-reliant in building and protecting their retirement assets,” said Annexus Co-Founder Don Dady. “Boomers are living longer, and their savings need to fund a retirement that could last 20-30 years or more and factor in rising health care costs, taxes and inflation,” he said. “As the leading independent product development company in the retirement planning industry, we design solutions to help Americans grow and protect their retirement savings, as well as provide a source of lifetime income they can’t outlive.”

Income Shortfalls, Lifetime Income are Top of Mind

In this American retirement survey, Baby Boomers were polled on multiple retirement risks, and the possibility of outliving retirement savings was a predominant concern – only 1 in 3 expressed confidence that they have sufficient income to last through retirement. Correspondingly, securing a reliable source of income they can’t outlive topped the list of retirement priorities: when polled, more than 4 in 5 said it was important or extremely important, regardless of retirement savings and income levels.

Opportunities for Consumer Education

While the survey showed that a large majority of Boomers understand the importance of establishing a dependable source of retirement income they can’t outlive, nearly 45% admitted they don’t know which investments are best-suited to provide it. “The research to us reveals that shifting retirement realities have contributed not only to a retirement income gap but a financial product knowledge gap as well,” said Annexus Co-Founder Ron Shurts. “Annexus sees a tremendous opportunity for the financial services industry, not only to educate clients but to ensure that as fiduciaries we understand which products are best suited to address clients’ top concerns.”

Critical Role of Annuities

Of the Baby Boomers surveyed who believe it’s important to work with an advisor, nearly 70% indicated they would purchase an annuity within their IRA. Co-Founder Don Dady noted the key role annuities play in helping them overcome the concerns highlighted by the study, saying, “No other product is better positioned to help Boomers more than annuities, and only insurance products provide the protection and lifetime income benefits they seek.”

Value of Financial Professional Increases with Income & Wealth

The research indicates a correlation between the level of Boomer income and retirement savings and the importance they place on seeking professional financial advice – the more they earn and have saved, the greater importance they place on working with an advisor. Only 45% of Americans overall consider working with an advisor important or extremely important, but that number jumps to 58% for those with an annual income of at least $100K, and nearly 65% for those with $500K or more in retirement savings.

Threat of Taxes & Inflation

Boomers are concerned about the negative effect taxes and inflation can have on their retirement savings – 3 out of 4 believe it’s important to have tax advantages in their retirement investments, and nearly as many are concerned or extremely concerned about the impact inflation will have on their retirement.

Increasing Retirement Awareness

To raise awareness about today’s critical retirement issues, concerns and opportunities – for both Baby Boomers and advisors – Annexus will be introducing a social media campaign around the survey results. Follow us on Twitter @annexus.

About Annexus
Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. In close collaboration with design partner Genesis Financial, Annexus has forged relationships with many of the industry’s leading insurance carriers and the world’s largest investment banks. Find out more about Annexus and our products at www.annexus.com.

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