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Strong Interest in Guaranteed Retirement Income, Failsafes

Practice Management

Interest among participants in employer-provided plans in guaranteed income during retirement is still strong, according to a recent study.

A strong majority—just below 75%—of participants in employer-provided retirement plans told Allianz Life Insurance Company of North America that they would like to have an option that offers guaranteed income for the rest of their lives. Among demographic groups, the most interested is Generation X; three-quarters of study participants who belong to that segment said they are interested in lifetime income options. Close behind are the Millennials, 67% of whom share that interest.

Generation X study participants also are the most nervous—three-quarters of study participants who belong to that segment said they are interested in a plan option that would protect their retirement funds from market downturns, while 68% of all participants are interested in that. 

Gen X respondents also led the way in worrying that they will outlive their retirement funds; almost 70% of them expressed that concern. Millennial worry in that regard stood at 56%, close to the overall concern of 55%. Least worried about that were the Baby Boomer respondents, with less than half—45%—expressing that concern.

Interest also is strong in assistance in managing allocations in retirement portfolios—68% of respondents would like plan sponsors to take care of that. And that interest is even high among those who want a lifetime income option. But Allianz also found that doesn’t mean that respondents have totally washed their hands of plan management; 61% said they regularly review their fund allocations and even make changes to them.