Youth Appeal: 20-Somethings More Likely To Prefer Guaranteed Income In Retirement Than Older Workers
While most retirement plan participants find guaranteed income appealing, the farther the horizon to retirement, the greater the attraction, study from The
"Our research shows that Americans, regardless of age, want the ability to create a guaranteed income for their retirement as traditional pension plans vanish from the scene," said
The Hartford's Guaranteed Retirement Income study finds that three out of five Americans (64 percent) say their employer's 401(k) or other retirement plan does not allow them to turn their savings into guaranteed income in retirement or they are unsure if it does. Overwhelmingly, those respondents say they would welcome the opportunity:
- Overall, 87 percent of respondents of all ages say they find it "very" or "somewhat" appealing to be able to turn at least a portion of their retirement savings into a guaranteed income.
- 95 percent of workers younger than 30 say the same, the highest of any age group.
- The same sentiment was expressed by 90 percent of those ages 30-39, 89 percent of ages 40-49, 88 percent of ages 50-59, and 77 percent of age 60 and older.
"Although the economy and the financial markets are on the mend, many younger employees are seeking sources of greater long-term financial security," Harris observed. "Few younger workers have access to traditional pension plans and many wonder whether
The Hartford's study, which surveyed 2,500 Americans ages 18 and older earlier this spring, was conducted following the introduction of The Hartford Lifetime Income® (HLI), an investment option that allows 401(k) participants to use their savings to create a pension-like income in retirement.
"Overall, the study confirms our own experience since January in offering Hartford Lifetime Income through employer-sponsored retirement plans across the country," said Harris, the actuary who designed the patented investment option. "We see broad acceptance of lifetime income among 401(k) participants of all ages, even younger workers who are decades from retiring."
However, The Hartford's study did pinpoint some differences related to gender and income. For instance, women (89 percent) have a greater preference for guaranteed retirement income than men (84 percent).
Household income also impacts the level of appeal, although not in a linear fashion. The concept of guaranteed retirement income appeals most to those with a combined annual household income of
"As a leading provider of retirement plans, The
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2011 Annual Report on Form 10-K and the other filings we make with the
Hartford Lifetime Income and the related technology and processes are patented under U.S. Patent Nos. 7,805,352B, 7,840,469 B2, 7,853,509 B2 and 7,979,337.
Hartford Lifetime Income is subject to state and broker-dealer availability.
Guarantees in the Hartford Lifetime Income are based on the claims-paying ability of The
RPG # 110499
News Provided by Acquire Media