Annuity owners lead in retirement confidence as more investors seek guarantees

Inflation, turbulent markets and uncertainty around Social Security have many Americans losing sleep over retirement. But new research shows one group is more confidence than most.

Nationwide’s latest research finds that 76% of investors with annuities expect to retire when they want, compared to just 49% of those without them. However, planned retirement ages have crept later, with respondents now targeting age 64.3, up from 63.7 in 2023.

“It’s not surprising to see annuity owners feeling confident in their ability to retire, particularly because annuities are one of the only investment products that can provide guaranteed income for life no matter how long someone lives and regardless of the economic environment,” says Rona Guymon, senior vice president of Nationwide Annuity Distribution. “This presents an opportunity for financial professionals to connect with investors who don’t currently own an annuity to see if one aligns with their financial goals and retirement plans. In any economy, and at all stages of the financial life cycle, annuities can provide protection and guaranteed income.”

Thirty one percent of investors who have never owned an annuity are now considering one, an exponential rise from 5% just two years ago.

A separate Greenwald Research program, sponsored by Nationwide, highlights that 70% of consumers trust they will receive annuity payments as promised, compared with just 61% who feel confident they’ll get full Social Security benefits.

“For years, misinformation and misinterpretations have plagued annuities, but as advisors have stuck with fact-based messages to dispel those myths, we’ve seen sentiment start to change. It’s incredible to see investors recognizing the unique benefits annuities offer and turning to them as a key solution for a stable retirement,” Guymon adds. “This reinforces how crucial it is for advisors to help their clients fully understand the benefits and drawbacks of all retirement solutions so they can make informed decisions about the products that are right for them.”

The survey also shows a shift toward professional planning with almost half of respondents (48%, up from 36% in 2023) now working with a financial professional. Those in advisory relationships are far more likely to have discussed annuities and to report that their advisor views them positively.

“Our survey data highlights an opportunity for advisors to connect with the 52% of investors who don’t currently receive professional financial advice, helping them gain the knowledge of solutions like annuities that will allow them to retire with confidence,” Guymon concludes.