With recent volatility in the markets altering perceptions around what it means to have a secure retirement, a new survey finds that more Americans are interested in having a guaranteed stream of retirement income.
According to a new joint poll from Kiplinger and Athene, three-fourths of respondents say they would like more guaranteed income in retirement than they already have or expect to have. Interestingly, more pre-retirees express this desire than current retirees do—registering at 82% versus 69%, respectively.
The survey, fielded by Qualtrics, found fears about a potential recession and uncertainty over the financial strength of Social Security are respondents’ top two financial concerns right now, with almost three-fourths (74%) saying they are worried about the impact of each on their retirement. In addition, the rising cost of health care (72%) and inflation (71%) closely follow as other top threats cited in the survey.
Most respondents (57%) say that having more guaranteed income in retirement would specifically ease their concerns about running out of money. More than a third (34%) say having more would ease concerns over market volatility.
“Retirees with enough guaranteed income to pay their fixed expenses can stay fully invested in the stock market during a downturn,” says Kiplinger magazine editor Mark Solheim. “And that can give their investments an opportunity to rebound once the market picks up again.”
So how much guaranteed income is not enough, according to the poll respondents?
- Of those already collecting Social Security, more than three-fourths (76%) say it provides 20% or more of their income in retirement, while 43% say it provides 50% or more.
- Of those who have a pension, nearly two-thirds (63%) say it provides or could provide 20% or more of their income in retirement, while 28% say 50% or more.
- Of those who have an annuity, more than a third (34%) say it provides or could provide 20% or more of their income in retirement, but only 7% say 50% or more.
The poll also shows how guaranteed lifetime income can help people feel more secure in retirement. Respondents without any kind of annuity report a higher level of concern across several measures than respondents with an annuity do.
While 62% of respondents without an annuity feel confident they will have enough retirement income to live comfortably, 74% of respondents with an annuity feel that way.
Moreover, respondents without a lifetime income stream express higher levels of concern about the impact of inflation on their retirement savings than those with an annuity do (72% versus 66%). They are also even more likely to have already cut back on spending because of inflation (74% versus 63%).
These respondents are also somewhat more worried about the following long-term threats to their retirement:
- Recession (75% versus 71%)
- Financial strength of Social Security (75% versus 69%)
- Potential cost of long-term care (69% versus 64%)
What’s more, among respondents who are already retired, those with lifetime income report being more satisfied with their lives than those without a lifetime income option. Here’s how the two groups responded when asked if they agree with the following statements:
- I spend my time doing things I enjoy (88% versus 78%)
- I'm as busy as I want to be (87% versus 75%)
- I have enough money to buy the things I need (86% versus 75%)
- I am enjoying life (85% versus 78%)
- I have enough money to splurge on things I want (59% versus 50%)
The poll was conducted by Qualtrics from June 21-24, 2022, with 818 respondents ages 50 or older, roughly split between fully or partially retired and not retired, as well as between men and women. Respondents with less than $100,000 in household net worth (excluding a primary residence) were not included in the survey.
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