Equitable, a leading financial services organization and
principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today
announced new findings from a survey of more than 1,000 consumers
to help uncover the latest financial trends that are top of mind
for Americans.
Equitable’s survey revealed that nearly half of consumers (47%)
believe it is unrealistic for them to retire before or at the
traditional retirement age of 65. Instead, they expect to retire
nearly a decade later at an average age of 74. The top three
challenges/obstacles cited were increasing living expenses (68%),
fear of not having enough money saved (66%), and a lack of
guaranteed income for retirement (39%). This reality contrasts
sharply with the 18% of respondents who want to continue working
past the age of 65.
“Today’s world is full of uncertainty, and inflation continues
to make everything more expensive. This is having a profound impact
on Americans’ retirement confidence, causing many to feel they will
need to work well beyond age 65 to save enough — not out of choice,
but rather necessity,” said Nick Lane, President of Equitable.
“While everyone has a different financial situation and vision for
retirement, a financial professional can help develop a plan that
keeps you on track. The ultimate goal is to retire on your own
timetable, when it makes sense personally and professionally.”
Equitable’s survey also found that if given the choice, nearly
two-thirds of consumers (64%) would prefer a consistent and
guaranteed paycheck in retirement versus having to determine how
much to withdraw from their retirement accounts to make their money
last throughout their lifetime. This sentiment was generally
consistent across all age groups, with millennials expressing the
most interest at 70%, followed by Gen X (65%), Gen Z (62%) and baby
boomers (59%).
With that said, it is noteworthy that Equitable’s survey found
that baby boomers, those closest to retirement, are the least
interested in the security of a steady paycheck in retirement
compared to younger workers, like millennials. This perhaps can be
attributed to the fact that most baby boomers, given their stage of
life, are more likely to already have access to reliable sources of
retirement income — such as payments from Social Security or a
traditional pension. Whereas younger generations face more
uncertainty in these areas and will likely need greater support to
ensure they don’t outlive their savings in the future.
“Automatic enrollment, automatic escalation and target-date
funds have been game changers in helping more Americans accumulate
retirement savings. However, what’s often overlooked is how to help
workers convert their savings into a reliable stream of income in
retirement,” said Lane. “With the disappearance of traditional
pension plans, the burden has shifted to individuals — especially
younger generations — to seek the education, guidance and solutions
to ensure their savings last throughout retirement.”
Equitable’s survey also revealed that nearly six in ten (57%) of
Americans view the current economic conditions in the U.S. as
highly volatile — reinforcing the need for strategies that offer
some level of protection for their investments, in addition to a
steady stream of income. This has resulted in a recent boom in
demand by U.S. consumers for financial solutions like annuities,
which can provide for guaranteed retirement income.
According to LIMRA,1 U.S. annuity sales reached a record high of
more than $385 billion in 2023, jumping 23% year over year. This
momentum has continued into 2024. U.S. annuity sales hit more than
$215 billion in the first half of this year,2 the highest six-month
sales figure since the insurance industry trade association LIMRA
began tracking such statistics in the 1980s.
About the study:
The survey was conducted by an independent, global consumer and
B2B panel provider. Respondents include 1,000 U.S. adults (ages 18
and older), with the total survey population representative of U.S.
demographic data. The online survey was fielded from May 22, 2024,
through June 1, 2024. Survey participation was anonymous.
About Equitable:
Equitable, a principal franchise of Equitable Holdings, Inc.
(NYSE: EQH), has been one of America’s leading financial services
providers since 1859. With the mission to help clients secure their
financial well-being, Equitable provides advice, protection and
retirement strategies to individuals, families and small
businesses. Equitable has more than 8,000 employees and Equitable
Advisors financial professionals and serves 3 million clients
across the country. Please visit equitable.com for more
information.
Reference to the 1859 founding applies specifically and
exclusively to Equitable Financial Life Insurance Company. All
guarantees provided within annuities are based solely on the
claims-paying ability of the issuing life insurance company.
Equitable is the brand name of Equitable Holdings, Inc., and its
family of companies, including Equitable Financial Life Insurance
Company (NY, NY) and Equitable Financial Life Insurance Company of
America, an Arizona stock corporation with an administrative office
located in Charlotte, NC, issuers of annuity and life insurance
products. Equitable Advisors is the brand name of Equitable
Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in
MI and TN) GE-6856968.1 (08/24) (exp.08/26).
Annuities are long-term financial products designed for
retirement purposes. They are contractual agreements in which
payments are made to an insurance company, which agrees to pay out
an income or a lump sum amount at a later date. Contract
limitations, fees and charges apply. Annuities are not suitable for
all investors. Some variable annuities let you partially protect
your savings while investing for growth potential. With such
partial downside protection, there is a risk of a substantial loss
of principal and previously credited interest because the contract
holder agrees to absorb all losses to the extent they exceed the
downside protection provided. In general, variable annuities are
subject to investment risks, including possible loss of principal
invested, and generally contain certain exclusions and limitations.
Be sure to learn about the rules and potential risk before you
invest.
Variable annuities are offered by prospectus, which contains
important information about investment objectives, risks, charges,
and expenses. For a prospectus, contact your financial professional
or the issuing life insurance company and read the prospectus
carefully before investing or sending money.
________________________ 1 LIMRA’s U.S. Individual Annuity Sales
Survey, January 2024 2 LIMRA’s U.S. Individual Annuity Sales
Survey, July 2024
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version on businesswire.com: https://www.businesswire.com/news/home/20240808132638/en/
Media: Bill Sutton (315) 373-9685
mediarelations@equitable.com
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