Consumers Are Nervous. Is That Good for Annuities?

What You Need to Know

Market research from F&G finds consumers are much more likely to be worried about their future retirement income now than they were a year ago.
Meanwhile, Jackson research finds that retirees who have defined benefit pensions from their employers are more likely to have individual annuities.

Investors are more nervous about the stability of their retirement income — and that could hurt annuity sales.

That possibility emerges from a review of new batches of market research data from F&G and Jackson.

F&G found that consumers are much more likely to be worried about their future retirement income now than they were a year ago, or two years ago.

Jackson learned, when it conducted a separate survey, that retirees who have defined benefit pensions from their employers are more likely, not less likely, to have individual annuities than other, seemingly comparable retirees.

What It Means

Jackson’s survey results could mean that workers who learn about the concept of guaranteed retirement income from a traditional defined benefit pension plan are simply more aware of, and more interested in, guaranteed retirement income than other workers.

But the results could also mean that workers who feel secure about at least some of their retirement income are more confident than other workers and more comfortable about the idea of taking active steps to strengthen already strong retirement planning.

The Data

F&G posted data from a Risk Tolerance Tracker program survey conducted in October. The sample included 1,691 U.S. adults ages 30 and older who own financial products valued at $10,000 or more.