There’s no doubt about it: Pensions are disappearing at an alarming rate. Companies continue to eliminate these defined benefit plans, replacing them with less costly offerings such as 401(k)s. The only problem, of course, is that they place the responsibility of saving for retirement —and selecting appropriate investments —solely on their employees.
That significant shift helps explain the surprising results of a survey by multinational financial services company Allianz. According to the survey, 90% of boomers believe an important function of their financial professional is to “ensure the safety of a significant part of my nest egg.”
Two other key findings: 84% said their financial professional should “make sure I have adequate and guaranteed income for life.” And 25% of boomers want a focus on creating more safety and security in their nest egg (up 6% since 2010).
In terms of financial products, consumers say that “guaranteed not to lose value” is a more important attribute than “provides a high return” by a factor of more than two to one (69% vs. 31%). Surprised?
The good news is that while pensions are disappearing, there are a number of other types of financial products, such as annuities, that can provide much of the same security and reliability that people want and need.
Total annuity sales in fourth quarter of 2013, for example, reached $61.9 billion, up 17 percent from the same quarter in 2012. That’s the largest quarterly percentage increase in 11 years! Want to know more? We’re here to help you!