The integration of guaranteed lifetime income solutions into workplace retirement plans remains a hot topic among plan advisors, sponsors and participants. To get an idea of the current state of these efforts, we talk with Matt Stubblefield, Aggregator Channel Director at Allianz, who highlights some key findings from a new report by the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America.

The report that examines participant attitudes, preferences and demand for annuities in defined contribution retirement plans, and Stubblefield will share ideas on how plan advisors can put these learnings into practice to enhance their client offerings.

Key Insights:

Rising Demand for Lifetime Income Solutions
Allianz's research reveals that participants strongly favor guaranteed lifetime income options like annuities, with 86% preferring predictable income over managing a lump sum. This trend reflects growing concerns around market volatility, inflation, and longevity risk.

Millennials and Diverse Groups Lead Interest in Annuities
Millennials show the highest interest in adding annuities to their retirement plans, followed by Gen X and Baby Boomers. Black, Hispanic, and Asian-American participants express more interest than white participants, showing a shift toward securing stable retirement income across demographics.

In-Plan Annuities and Personalized Advice Are Preferred
Participants prefer contributing to annuities gradually via payroll deductions. They prioritize features like market protection, flexibility, and portability. Many view personalized advice and managed accounts as critical tools for effectively incorporating these products into retirement strategies.

See Also:

Solving the Portability Puzzle with Allianz Life’s Ben Thomason

Exploring Retirement Income Strategies with Joshua Grass and Todd Levy

Research Cited: The State of Lifetime Income: Participant Survey, conducted by the Allianz Center for the Future of Retirement in November 2024 with a nationally representative sample of 2,488 respondents aged 18+ who are currently contributing to an employer-sponsored retirement plan.

Fixed index annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, tax-deferred accumulation potential, and the reassurance of a death benefit for beneficiaries.

This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives and employees do not give fiduciary, tax, or legal advice. Allianz does not provide financial planning services.

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Allianz Life Insurance Company of North America is not Affiliated with 401(k) Specialist

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