The upward trend in life expectancy has been evident for many years and yet still millions of Americans do little to plan for the large chunk of their lives that will live in retirement.
A survey from Western & Southern Financial Group is the latest to highlight a lack of professional planning – and therefore confidence – in retirement plans with inflation having added a new layer of concern.
For pre-retirees, their greatest fears are running out of money (70%), health care costs (57%), inflation (54%) and Social Security cuts (49%) while those already retired rank Social Security cuts as the largest concern (61%), followed by inflation (60%), running out of money (54%), and healthcare costs (46%).
Six in ten across all age groups do not have a financial professional, although a third are looking for one.
This should perhaps be higher on the agenda given that almost half of poll participants are only slightly or not at all confident in being able to manage their own investments throughout retirement. Women and those with low incomes are less confident in this regard.
"Sustaining one's desired retirement lifestyle requires a balancing act," said Jill McGruder, senior vice president and chief marketing officer at Western & Southern. "On one hand, it calls for producing ongoing income for ongoing expenses, both expected as well as unplanned. On the other hand, it demands protecting asset values from risks such as inflation, market volatility, increased health care spending and extended lifespan.”
The report reveals that more than 50% of those with a formal, written retirement plan are very or extremely confident in having enough retirement income.
However, just 41% of pre-retirees say they are knowledgeable about what retirement planning entails compared to 47% of retirees, although they are twice as concerned about it (26% of pre-retirees vs. 13% of retirees).
High-net-worth individuals are more than twice as knowledgeable of retirement income planning as their low net worth counterparts (57% vs. 24%).
The study found that the role that annuities play in retirement planning is one area that it not well understood:
"While fully eight in 10 of those surveyed believe income planning is necessary for retirement, only two-thirds agree that annuities can provide a protected lifetime income,” McGruder added. “Our role is to build greater understanding of an annuity's guaranteed benefits."
A Texas-based bank selects Raymond James for a $605 million program, while an OSJ with Osaic lures a storied institution in Ohio from LPL.
The Treasury Secretary's suggestion that Trump Savings Accounts could be used as a "backdoor" drew sharp criticisms from AARP and Democratic lawmakers.
Changes in legislation or additional laws historically have created opportunities for the alternative investment marketplace to expand.
Wealth managers highlight strategies for clients trying to retire before 65 without running out of money.
Shares of the online brokerage jumped as it reported a surge in trading, counting crypto transactions, though analysts remained largely unmoved.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
