Harris poll: 85% of workers 40–61 find guaranteed monthly retirement income appealing
The poll for Athene found 23% had purchased annuities and only 34% said they mostly or fully understood them.
At a glance
A Harris Poll conducted for Athene Holding found that 85% of U.S. workers aged 40 to 61 called guaranteed monthly income in retirement very or somewhat appealing.
Forty-three percent said they were very or extremely concerned about not having a guaranteed source of income in retirement.
Only 34% of respondents said they mostly or fully understood annuities, while 51% said they would consider buying or planned to buy one.
A Harris Poll conducted for Athene Holding found that 85% of U.S. workers aged 40 to 61 called guaranteed monthly income in retirement very or somewhat appealing. Income for life drew the most interest, cited by 57%; receiving a set monthly payment was cited by 49%. Only 23% reported having purchased annuities, PLANADVISER reported.
Forty-three percent said they were very or extremely concerned about not having a guaranteed source of income in retirement. Among Gen X and Millennial respondents, more than 60% said they had fewer guaranteed income options than previous generations.
Only 34% of respondents said they mostly or fully understood annuities, while 51% said they would consider buying or planned to buy one. Another 54% said they knew very little about or somewhat understood annuities, and 12% said they did not understand them. Fifty-two percent raised factors that made them hesitate, including the perception that annuities are confusing, cited by 20%, and concern that their money would be unavailable, also cited by 20%.
A second survey of a different population
LIMRA's Retirement Income Readiness Report, published last month, found that 71% of pre-retirees were interested in retirement income that included protected lifetime income streams such as Social Security, pensions or annuities, and that 74% were very or somewhat interested in learning about protected lifetime income. Their concerns about retirement income products were fees (35%), lack of control over savings (27%) and locking up money (26%). The polls describe different groups: Harris surveyed workers aged 40 to 61, LIMRA surveyed pre-retirees.
The LIMRA report framed the industry's problem as one of context. "The challenge for the industry is not simply product awareness," it said. "It is helping consumers understand how retirement income solutions fit into broader financial plans and long-term retirement goals, and how those solutions can be calibrated to investors' preferences and risk tolerance."
PLANADVISER pairs that unfamiliarity with limited access, citing the Defined Contribution Institutional Investment Association's Retirement Research Center. For an advisor, the spread between the 51% who would consider an annuity and the 34% who say they understand them suggests the opening is explanatory. The polls describe broad populations, not client books, and the coverage does not say whether respondents work with an advisor.
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