A new Morning Consult survey for ACLI finds that retirement savers between the ages of 45 and 65 want access to guaranteed lifetime income tools and financial planning options. ACLI featured these findings in a Twitter chat on how more people, particularly Hispanic and Latino Americans, can achieve financial certainty.
95% of retirement savers agree that it is important to have a financial plan for retirement.
81% of retirement savers report they are concerned about having enough savings to last through retirement.
54% of retirement savers report today’s economy has them considering “a guaranteed lifetime income product that pays out like a pension."
Americans are living longer which means retirement planning is more essential and challenging than ever before. However, there is a product that guarantees you won’t outlive your savings. Annuities provide protected lifetime income, ensuring peace of mind and financial security through retirement.
An annuity is a long-term agreement (contract) between you and an insurance company. The company agrees to make a series of income payments to you in exchange for a premium (or premiums) that you pay. It allows you to accumulate funds on a tax-deferred basis for later payout in the form of a guaranteed income that you cannot outlive.
As with any major purchase or financial decision, it’s important to evaluate needs and options carefully. There are consumer protection standards and tools (at the federal and state level) available that provide simple and practical guidance about annuities.
For example, when buying variable annuities, companies are required to provide an SEC-approved prospectus in plain English with fee disclosures.
NAIC BUYER’S GUIDES
NAIC.org has a number of consumer publications allowing people to compare options along with other helpful guidance.
SIMPLE & STREAMLINED DISCLOSURES
Federal regulators have adopted improvements to allow disclosures to be concise and reader friendly to improve understanding of the contract’s features, fees and risks.
Several state and federal standards require consumers’ best interest be reflected in sales recommendations and strictly govern deceptive sales practices. In fact, salespersons have four obligations in putting your interests first and ensure transparency, honesty and clarity are present in interactions:
Salesperson must disclose, in writing, the material facts relating to the scope and terms of the relationship, and all material conflicts of interest associated with the recommendation.
Salesperson must establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest.
Material conflicts of interests must be identified, disclosed and mitigated.
Salesperson must exercise reasonable diligence, care, and skill.
Annuities are full of penalties for cashing out, deterring investors from seeking higher rates. (WSJ subscription required)
Retirement savers are concerned about financial harm under fiduciary-only regulation.
White paper on how fiduciary-only regulation would cut access to financial guidance and widen the racial wealth gap.
Coalition Leaders Examine the Retirement Landscape for National Annuity Awareness Month 2023