More than half (52%) of Millennials are very or somewhat interested in annuities, according to a survey by the Indexed Annuity Leadership Council.
Millennials said they are interested in annuities because they can
help grow a retirement nest egg and provide long-term financial security. This indicates that the younger investor cohort is looking toward alternative
retirement savings products, the Council said. And among all age groups, 43%
expressed interest in annuities.
“It’s no surprise that Millennials, who entered the workforce after the tumultuous 2008 economic recession, are interested in products that can provide certainty against the unpredictability of the stock market,” says Jim Poolman, executive director of the Indexed Annuity Leadership Council. “And, as other demographics are also showing interest in annuities, it is clear that traditional retirement savings vehicles are not meeting the needs of today’s consumers, and they are looking for a product, like a fixed annuity, which can offer confidence and security in this new pay-for-yourself retirement era.”
The survey also found that one in three Millennials have no money saved for retirement and one-quarter of them have more debt that savings. In addition, nearly 10% of seniors age 70 or older have less than $5,000 in savings.
GfK’s Knowledge Panel conducted the survey for the Council among 6,836 adults between April and May of 2015.