Seeking input from participants, as well as plan advisers
and plan sponsors, John Hancock made the sites more engaging and intuitive, the
company says, by improving accessibility to tools, adding one-click navigation
and tailoring educational material for the particular plan and market. The
navigation experience has been simplified, in general, with fewer clicks needed
for the participant to take action.
According to Patrick Murphy, the company’s president, John
Hancock “employed intuitive, uncluttered Web designs that incorporate best
practices in online financial decisionmaking.”
As 66 million Americans retire over the next decade, their assets will shift into income products, and rollovers, with some going toward professional financial planning.
According to analysis from LIMRA Secure Retirement
Institute, in the next ten years 66 million Americans will retire. That means
by 2025, the number of retirees in the U.S. will have increased 40%.
As this enormous group begins to shift their assets toward
living in retirement, more than $25 trillion in financial assets will be
designated for retirement income, double the amount available today.
To better understand this market and its opportunities, the
Secure Retirement Institute has compiled its research in “The Retirement Income
Reference Book 2015.” This reference covers the varied facets of planning and
managing retirement income.
Based on the research, Jafor Iqbal, assistant vice president
for the institute and the book’s author, identified three opportunities for the
industry and advisers in the retirement income market.
Guaranteed lifetime
income solutions: More than 40% of pre-retirees are interested in
converting some of their assets into a lifetime income stream. The market for
converting pre-retiree assets into future guaranteed income is estimated at
$575 billion. Current retirees who seek guaranteed income represent another
$180 billion, for a total market potential of $750 billion.
Rollover market: The
rollover market is estimated to be $455 billion in 2015, and will grow to $550
billion by 2018. For one in four retirees, a discussion of retirement income
with an adviser before they retire is a strong motivator to roll out money. Proposed
Department of Labor (DOL) regulations, however, could have a significant impact
on these rollover discussions and this market’s potential.
Retirement income planning: Retirement comes with risks. Secure Retirement Institute research
consistently shows consumers are concerned about having enough money in their
retirement. More than four in ten pre-retirees are uncertain about their
retirement security. Worries about inflation, cuts to Social Security and
health care costs are among their top concerns. Retirement income planning can
effectively address these insecurities.
Pre-retirees who work with an adviser are almost twice as
likely to have completed retirement planning activities such as estimating how
long their assets will last, determining the health care coverage they’ll need, and setting a specific plan to generate income in retirement. Those who have a plan
also feel more confident in their retirement security, trust their advisers
more, and consolidate assets with their advisers.
“The Retirement Income Reference Book 2015” provides
industry executives and professionals with a comprehensive view of LIMRA Secure
Retirement Institute’s latest data, market projections and research on the
retirement income market. Information on ordering the book is on LIMRA’s
website.