Annuities Boost Retirement Confidence

Inflation, turbulent markets and uncertainty around Social Security have many Americans losing sleep over retirement. But new research shows one group is more confident than most.

According to Nationwide, the latest research finds that 76% of investors with annuities expect to retire when they want, compared to just 49% of those without them. However, planned retirement ages have crept later, with respondents now targeting age 64.3, up from 63.7 in 2023.

“It’s not surprising to see annuity owners feeling confident in their ability to retire, particularly because annuities are one of the only investment products that can provide guaranteed income for life no matter how long someone lives and regardless of the economic environment,” says Rona Guymon, senior vice president of Nationwide Annuity Distribution.

Thirty one percent of investors who have never owned an annuity are now considering one, an exponential rise from 5% just two years ago.

“For years, misinformation and misinterpretations have plagued annuities, but as advisors have stuck with fact-based messages to dispel those myths, we’ve seen sentiment start to change. It’s incredible to see investors recognizing the unique benefits annuities offer and turning to them as a key solution for a stable retirement,” Guymon adds.

The survey also shows a shift toward professional planning with almost half of respondents (48%, up from 36% in 2023) now working with a financial professional. Those in advisory relationships are far more likely to have discussed annuities and to report that their advisor views them positively.

If you are thinking about adding an annuity to your retirement portfolio, contact Stevie Swain, CEO and President of Swain Consulting.