5 Retirement Income Issues Plaguing Baby Boomers


A number of retirement income issues are top-of-mind for baby boomers, which guaranteed income products can address. Yet many “are in the dark” when it comes to identifying the right financial products to resolve their concerns.

Annexus notes in new research that most boomers are unsure if they’ve saved enough and are concerned about running out of money. The annuity provider surveyed Americans aged 50 to 70 on their most pressing financial concerns, the steps they’ve taken to prepare for retirement, and the value they place on working with a financial advisor.

Shifting Retirement Landscape

“We’ve seen a massive shift in the retirement landscape that has forced Baby Boomers to become largely self-reliant in building and protecting their retirement assets,” Annexus co-founder Don Dady said in a statement. “Boomers are living longer, and their savings need to fund a retirement that could last 20-30 years or more and factor in rising health care costs, taxes and inflation.”

Income Shortfalls, Lifetime Income are Top of Mind

Baby boomers were polled on multiple retirement risks, and the possibility of outliving retirement savings was a predominant concern—only one in three expressed confidence that they have sufficient income to last through retirement. Correspondingly, securing a reliable source of income they can’t outlive topped the list of retirement priorities: when polled, more than four in five said it was important or extremely important, regardless of retirement savings and income levels.

Opportunities for Consumer Education

While the survey showed that a large majority of boomers understand the importance of establishing a dependable source of retirement income they can’t outlive, nearly 45 percent admitted they don’t know which investments are best-suited to provide it.

“The research to us reveals that shifting retirement realities have contributed not only to a retirement income gap but a financial product knowledge gap as well,” added Annexus co-founder Ron Shurts. “Annexus sees a tremendous opportunity for the financial services industry, not only to educate clients but to ensure that as fiduciaries we understand which products are best suited to address clients’ top concerns.”

Value of Financial Professional Increases with Income and Wealth

The research indicated a correlation between the level of boomer income and savings and the importance they place on seeking professional financial advice—the more they earn and have saved, the greater importance they place on working with an advisor.

Only 45 percent of Americans overall consider working with an advisor important or extremely important, but that number jumps to 58 percent for those with an annual income of at least $100,000 and nearly 65 percent for those with $500,000 or more in savings.

Threat of Taxes and Inflation

Boomers are concerned about the negative effect taxes and inflation can have on their savings—three out of four believe it’s important to have tax advantages in their retirement investments, and nearly as many are concerned or extremely concerned about the impact inflation will have on their retirement.

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