PROTECTED RETIREMENT INCOME AND PLANNING STUDY

2 minute read

In partnership with CANNEX, North America’s leading provider of pricing, data,
and annuities product research, the Alliance released the third installment of the Protected Retirement Income and Planning Study, a joint research effort focused on both investors and financial professionals, designed to better understand and forecast retirement income trends.

This third PRIP Study provides the latest insights into perceptions of annuities in retirement planning and the concerns of investors and financial professionals in the current market environment and found that as high inflation persists into the second half of the year, four out of five Americans cite inflation and recession anxieties as top retirement income concerns and are searching for an alternative to traditional asset allocation strategies. 

The corollary study of financial professionals revealed the chasm between consumers and financial professionals when it comes to protecting and spending money in retirement continues to confound in this latest survey with registered investment advisors and broker-dealers even more concerned than consumers about inflation, market volatility and chances of a recession. Nearly 80% of financial professionals have changed their approach to retirement planning this year.

Some of the study’s key takeaways include:

  • 60% of consumers reported reducing their spending because of inflation.
  • 82% of financial professionals surveyed cited inflation as a factor in the decision to make a change.
  • A third of financial professionals are more likely to recommend an annuity due to the current climate of rising interest rates, inflation and growing anxiety.

 

“Ninety-two percent of financial professionals are worried about inflation reducing client spending power, and so it’s good that many of them have changed their retirement planning approach this past year. But for those financial professionals who tell their clients to simply ride out the risks and are not considering protected income options like annuities, don’t be surprised if you find them going elsewhere for advice.”

Jean Statler, CEO of the Alliance for Lifetime Income

This third installment comes after PRIP 2.0 published in December 2021, which found that investors who were asked to build their own hypothetical $1 million retirement portfolio, said annuities and other income-producing assets were the most favored. The inaugural study published in June 2021, found investors eager for financial protection amid a challenging fixed-income environment and the declining prevalence of private sector pensions. The PRIP studies are an outgrowth of the Protected Lifetime Income Study, an annual, Census-balanced survey of U.S. adults the Alliance sponsored in 2018 and 2020 to gauge consumers’ attitudes and behaviors around retirement-income planning.

To view the full findings, visit the links below:

To learn more about the findings from the second installment of the Protected Retirement and Income Planning study (PRIP 2.0), visit the links below:

To learn more about the findings from the first Protected Retirement and Income Planning study, visit the links below:

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