Annuities Boost Retirement Planning Confidence
When asked about their confidence in maintaining a financially healthy lifestyle during their retirement years, 47% of both retirees and pre-retirees say owning an annuity made them more confident they could maintain that lifestyle.
LIMRA points out annuities are an attractive means of providing investment growth and security for retirement income, especially in light of fears individuals may have about unfavorable market conditions (e.g., a drop in stock values) negatively impacting their retirement savings. The study found 71% of respondents want to have enough savings for lifetime income, and 64% want to remain financially independent throughout their retirement.
Other factors that make individuals confident about their retirement planning include:
- Confidence in their ability to manage their finances (62%);
- Expecting to live modestly in retirement (59%); or
- Saving enough for retirement (53%).