AARP Study: Nearly Half of Workers Plan to Receive an Annuity at Retirement

AnnuitiesAccording to the Public Policy Institute of the American Association of Retired Persons (AARP), nearly 50 percent of workers plan to receive an annuity, either one purchased from a life insurer or through an employer-provided pension plan, while 38 percent expect to receive a life annuity.

The study, “Older Americans’ Ambivalence Toward Annuities,” also found that almost three in four workers (74 percent) are receiving or expect to receive income from an annuity; and six in 10 (63 percent) are receiving income from a life annuity.

Furthermore, three in 10 (30%) workers and four in 10 (41%) retires with a choice of options in income distribution intend to or already have chosen an annuity, the survey found.

For 82.3 percent of respondents, annuities are “very” or “somewhat” convincing options, due to its ability to “help you manager your budget because you get a predictable amount of money each month.”

In addition, 81.6 percent of respondents believe that annuities offer “peace of mind because payments will continue as long as you live, while 80 percent said annuities “ensure that your month income will not fall, even if there is a large drop in the market.”  Another 76.8 percent said annuities “can help you remain independent because the money will never run out” and 75.5 percent reported that it offers “certainty in respect to the rate of return.”

Annuities are proving to be a hot retirement option amongst workers and retirees. National Agents Alliance urges our insurance agents to ask their clients if annuities have ever been an option that they have considered. Because annuities are tax deferred, meaning that they don’t have to pay taxes money they accumulate until it is withdrawn in the future, it can be a huge benefit for our clients. Annuities also avoid the costs and delays of probate, which gives your loved ones access to the funds quickly.

If you are interested in a free quote or more information about purchasing an annuity, please visit http://www.naalife.com.


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