A small minority (15 percent) found that their retirement plan exceeded expectations and 12 percent had more money saved than they anticipated.
Retirees Rely On Uncertain Income Sources
Retirees surveyed estimate 44 percent of their retirement income comes from pensions and an additional 28 percent comes from Social Security. Conversely, pre-retirees predict over half of their retirement income will derive from sources subject to market volatility and vulnerable to rising interest rates, including qualified retirement plans (27 percent), IRAs (13 percent) and stocks and bonds (12 percent).
Compounding the problem, only 50 percent of consumers who work with financial professionals have a written plan for retirement. And just two out of five have distribution plans for taking income in retirement.
Annuity Ownership Brings More Certainty
The survey also looked at consumers' views about annuities in the context of retirement income and found that fixed annuity ownership brings more certainty and confidence. Fifty-six percent of annuity owners know how much money they will have each month in retirement, compared to 48 percent of non-owners. Additionally, annuity owners were significantly more confident than non-owners that their current retirement plans would afford them the retirement they desired.
The survey also showed that the majority of fixed annuity owners are satisfied with access, expenses and growth.
"For consumers looking to reduce uncertainty related to their financial futures, fixed annuities can be a great solution," Taylor said. "Fixed annuities offer protection against market downturns, the opportunity to create guaranteed lifetime income, and can help offset other portfolio risks such as inflation and rising interest rates. As our survey finds, fixed annuities offer welcomed guarantees to consumers when it comes to retirement income planning."
To learn more about how fixed annuities can protect retirement money and guarantee a lifetime income, visit Genworth's recently launched
website containing planning tools and educational videos, as well as more information about
The Future of Retirement Income Study
Genworth can also be found online through its social media platforms:
About the Study
During 2012, Genworth conducted the Retirement Income Planning study in conjunction with Directive Analytics, a third party research administrator. The study consisted of several phases, to include in-depth interviews, focus groups and quantitative surveys with both consumers and financial professionals. In
, an online, quantitative survey was completed by 1,340 retired consumers and pre-retirees between the ages of 40 and 80 with at least
in household income. In
, an online, quantitative survey was fielded among 400 financial professionals with at least one year of experience. Presented results represent statistically significant findings tested at 95% and 90% confidence intervals.
Annuity guarantees are based solely on the claims paying ability of the issuing insurance company.