Baby Boomers' Retirement Worries Highlighted
April 6, 2011
A huge percentage of the population approaching retirement, 77 million Americans, have recently reveled in the Associated Press-LifeGoesStrong.com survey they are nervous about their nest-egg and their retirement planning.
In fact, only 11% of those born between 1946 and 1964, responded that their are confident they will be able to retire comfortably. Many of the rest, 44% of those surveyed, believe they will have to work longer or will not be able to retire entirely. Furthermore, 1 in 4 baby boomers' cited they have little or no retirement savings. To make matters worse, almost 60% of those surveyed cited their 401K, personal investments and/or real estate holdings have lost value with the downturn of the economy.
This survey, the AP-LifeGoesStrong.com poll, was conducted through traditional telephone and mail sampling by the Knowledge Networks of California. To learn more about the Associated Press news article, please click here. To learn more about the survey, follow this link.1
One positive result of the current economy is it has been brought to light that the baby boomer generation really needs guidance with their retirement planning.
In a recent study by the Wharton School of the University of Pennsylvania, it was stated that indexed annuity returns are both more consistent than stock market returns and often more attractive. Over the five year period of the study, the average annuity return averaged 4% or more compared to the stock market returns which narrowly had a positive return in some periods and negative in others. To learn more about this study, please click here.2
The sale of fixed indexed annuities has grown dramatically since their inception in the mid-1990s. Given the current state of the enconomy and baby boomers' revelations about their retirement planning, we only expect this market to grow.
As you can see, in this time of financial insecurity, baby boomers will want (and need) retirement solutions that are going to protect their nest-eggs better than real estate and investments have in this past economic crisis. Annuities offer a perfect solution.
1. Fram, Alan. "Poll reveals baby boomers' retirement fears." Yahoo! News. Associated Press, 5 April 2011. Web. 6 April 2011.
2. Kestler, Jason. "Study finds fixed indexed annuity returns attractive and consistent." ProducersWeb.com. 28 March 2011. Web. 6 April 2011.
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