MINNEAPOLIS--(BUSINESS WIRE)--As financial markets continue to fluctuate and place retirement portfolios at risk, non-retired Americans are showing a clear desire for guaranteed income in retirement according to a survey* by Allianz Life Insurance Company of North America (Allianz Life). When asked to rate several factors related to creating a more secure retirement, the most popular selection was “having a guaranteed stream of income in retirement” (86 percent), outranking “having a 401(k)/403(b)/457 plan” (71 percent).
When asked to rate their own personal needs, nearly half (47 percent) of non-retirees rated a guaranteed stream of income as the top retirement need they have yet to acquire in order to feel more secure. This was deemed far more important than the next highest selection – “a job that gives me a 401(k)/403(b)/457 plan” (27 percent) – and more than twice as important as “having a diverse portfolio of investments” (22 percent).
“Especially in an environment where equity markets – and therefore 401(k) balances – can swing wildly within a week or a day, it is not surprising to see Americans expressing far more interest in the need for guaranteed retirement income versus the balance of their retirement account,” said Allianz Life President & CEO Gary C. Bhojwani. “Although the idea of a guaranteed stream of income continues to resonate with Americans, most pre-retirees don’t own annuities or are apprehensive about adding one to their retirement plan. The simple fact is that annuities are the only retirement income products that pool risk, and thereby can guarantee that all annuity owners will have income for the rest of their lives, regardless of how long they live.”
The contrast between a desire for guaranteed income in retirement and the number of non-retirees who actually have some form of guarantees is alarming. Only 8 percent of non-retirees say they own an annuity and less than a quarter (18 percent) have guarantees through a pension. Nearly 40 percent indicate they own no retirement or investment products of any kind. Furthermore, 26 percent say they still have no idea what they need to acquire in order to feel their retirement will be secure.
“Our survey results are confirming that Americans want more guarantees in retirement but simply don’t know what to do to create financial certainty,” added Bhojwani. “More education is clearly needed about annuities and how they can help protect a portion of savings and provide steady, predictable income throughout a person’s retirement.”
About Allianz Life
Allianz Life
Insurance Company of North America has been keeping its promises since
1896. Today, it carries on that tradition, helping Americans achieve
their retirement income goals with a variety of annuities and life
insurance products. As a leading provider of fixed index annuities,
Allianz Life is part of Allianz SE, a global leader in the financial
services industry with nearly 155,000 employees worldwide. Based on its
revenue, Allianz SE is the 20th largest company in the world (Fortune
Global 500, August 2010).
All guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. Variable products are distributed by its affiliate, Allianz Life Financial Services, LLC, Member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York.
*Allianz Life Insurance Company of North America conducted an eNation survey, “The State of the Economy’s Impact of College & Retirement Savings” (+/- 3.1% margin of error), through Synovate Research in August and September 2011 with 1,000 respondents. Full results are available upon request.