COVID-19 Spotlights Retirement Readiness, Sparking Conversations About Annuities

Jackson National Life Insurance Company (Jackson) and the Insured Retirement Institute (IRI) today announced results from a new research study that was fielded in the midst of the COVID-19 global pandemic. Conducted between April 8-17, 2020, the online survey found more than half (55%) of financial professionals believe 25% or more of their client base is at risk of running out of money during retirement. Conversely, a mere 4% report none of their clients are at risk, illustrating the vast majority of financial professionals feel at least one or more of their clients are in danger of exhausting their retirement savings.

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When asked the same question before the pandemic, 38% of financial professionals stated a quarter or more of their clients may deplete their retirement savings.

“The jump to 55% is significant, although not surprising as COVID-19 continues to upend many investors’ financial plans,” said Aimee DeCamillo, chief commercial officer for Jackson and president of Jackson National Life Distributors LLC. “As uncertainty and market volatility become our new normal, the need for income protection is clear. Although consumers cannot control the pandemic, they can control their financial futures. Annuities are designed to help weather this storm, as the need to ensure hard-earned savings can withstand disruption — to and through retirement — becomes more important than ever.”

As investors brace for financial impact amid COVID-19, annuity conversations are increasing — nearly two thirds (64%) of financial professionals indicate they are discussing annuities more frequently with clients during the pandemic, and 35% say they are talking about annuities much more frequently. Conversely, only 8% indicate they are discussing annuities less frequently during this time, which could be a result of reduced interaction with clients.

In light of these findings, Wayne Chopus, president and chief executive officer of IRI, a leading trade association for the retirement income industry, said annuities continue to change the narrative about retirement readiness.

“Not only do 68% of financial professionals report they are more likely to discuss annuities with clients in the future, but a whopping 77% report their clients are very or somewhat receptive to discussions about annuities,” he said. “This represents a huge opportunity to have these conversations about protected lifetime income.”