Helping clients plan for a longer life

Key takeaways:

• Longevity risk is one of the biggest challenges in retirement planning.
• Clients may avoid conversations about how long they could live.
• Reframing the discussion around long-term planning and reliable income can help.
• Annuities may help clients understand how to protect retirement security.

Longevity risk is one of the biggest challenges in retirement planning. This is especially true for Gen X and older millennials, who are approaching retirement with longer life expectancies and greater uncertainty about how long their savings may need to last.

Clients may avoid the topic, but financial professionals who reframe the conversation around long-term planning and reliable income can help clients better understand the role annuities can play in helping protect retirement security.

Insights from our new white paper offer practical ways to guide these conversations more effectively.

Clients don’t like talking about longevity — but financial professionals need to

One of the biggest barriers to annuity adoption isn’t product design or pricing. It’s psychology.

When clients consider annuities, they confront a difficult question:

How long will I live?

For many people, thinking about mortality is uncomfortable. Behavioral research shows that reminders about death can actually reduce interest in annuities. But avoiding the conversation entirely can leave clients exposed to one of the biggest retirement risks — outliving their savings.

Financial professionals can help make these discussions more productive by shifting the focus away from mortality and toward planning for a longer life.

Clients respond better to planning for a long life than planning for an early death.

Research shows strong interest among younger generations

A recent survey of 946 U.S. millennials, Gen X and baby boomers revealed that younger generations may actually be more interested in annuities than many assume.¹

The Athene-commissioned survey and white paper from researchers at UCLA Anderson School of Management and Duke University explores differences in how the generations may view annuities and financial topics.

Younger generations also reported wider ranges in expected lifespan, meaning they are less certain about how long they will live.¹ That uncertainty may be a discussion point for financial professionals.

The research found that individuals who expected to live longer were more likely to express interest in annuities.

Why clients avoid longevity conversations

Two behavioral biases often make longevity planning more difficult for clients.

1. Mortality avoidance

   People tend to avoid thinking about their own death. When the topic becomes too explicit, it can create discomfort and resistance.

2. Loss aversion

   Clients may frame annuities as a gamble — worrying that if they die early, they will lose money. The emotional impact of that potential loss can outweigh the benefit of guaranteed lifetime income.

How financial professionals can reframe the conversation

Many clients underestimate how long they may live. You can help clients feel more comfortable talking about longevity by focusing on a few key strategies.

Conversations about steady income, protecting savings and maintaining a comfortable lifestyle can make the topic feel more positive and practical. This approach can help clients better understand how annuities may support long-term retirement security.

Financial professional example

Instead of asking:

“How long do you think you’ll live?”

Try:

“Many healthy couples today have a good chance that one spouse lives into their 90s. Let’s make sure your income plan works if that happens.”

Strategy: Focus on income, not death

Framing annuities as a source of guaranteed lifetime income can help shift the conversation from longevity concerns to retirement income planning.

Clients may respond better to language such as:

• Guaranteed lifetime income
• Income that lasts as long as you do
• Protection against outliving your savings

Clients buy life insurance to protect against dying early. They buy annuities to protect against outliving their savings.

Strategy: Match messaging to life stage

Research shows that motivations shift with age. Younger clients often prioritize growth, while older clients tend to prioritize protection.¹

Key takeaways for financial professionals

The key takeaway is simple: Longevity conversations can be more effective when they focus on living longer — not dying sooner.

When financial professionals frame annuities as tools for guaranteed retirement income, clients may be more likely to see their value in a comprehensive retirement strategy.

For deeper insights and practical strategies to apply with clients, download our latest white paper Solving the Annuity Puzzle for New Generations of Consumers.

Insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.