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How to talk about annuities to clients in their 40s and 50s
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Many clients in their 40s and 50s believe annuities are only for people knocking on retirement’s door. But life between 40 and 59 is full of financial transitions and those events can offer powerful moments to reframe the conversation.
It’s also a stage of life marked by complexity. According to a survey conducted for Athene by The Harris Poll, 73% of Gen Xers report that caregiving responsibilities, whether for adult children, aging parents or both, have already impacted their retirement goals.1 Many are delaying retirement, dipping into savings or losing sight of their long-term plans altogether.
Whether they’re adjusting to an empty nest, receiving an inheritance or navigating early retirement, your Gen X and millennial clients may be looking for ways to plan long-term. That’s where annuities can play a role. Not just as retirement income vehicles, but as flexible solutions that can help protect, grow and reallocate savings in meaningful ways.
Here are six life-stage scenarios and prompts to consider that can help you begin the conversation.
1. “I just changed jobs, what should I do with my old 401(k)?”
A client in their mid-40s has accepted a new role and is unsure what to do with the balance in their previous employer’s retirement plan. It’s a big decision and a critical moment to realign long-term goals.
Conversation starter
“What are your top priorities for those funds: growth, protection or flexibility? There are options that could support all three.”
Annuity perspective
Rollover scenarios can be ideal opportunities to introduce annuities. For clients who are changing jobs, part of the conversation may be how to keep some assets growing inside a 401(k), while repositioning other dollars to an annuity that can support protection, tax deferral or future income goals.
2. “I’m already maxing out my 401(k). What else can I do to help meet my long-term retirement goals?”
Conversation starter
“Once you’re taking full advantage of your 401(k), how would you feel about placing additional savings in a vehicle that grows tax-deferred and can later provide income?”
Annuity perspective
Clients in their 40s and 50s are directly affected by SECURE 2.0, which is now in full effect. With the legislation placing more emphasis on retirement readiness and lifetime income planning, job changes or supplemental retirement savings strategy conversations may be the right time to talk with Gen X and millennial clients about how a 401(k) and annuities can complement each other in long-term retirement planning. There are no IRS restrictions on the amount that can be used to purchase an annuity with pre-tax dollars, which could help clients save more for the future.
3. “I received an inheritance. How can I help protect my wealth?”
Your client just received a lump sum after the loss of a loved one. They’re grateful, overwhelmed and want to make the most of the money without risk of losing it to market timing or reactive decisions.
Conversation starter
“Would you feel more confident knowing part of that money was protected and still working toward your long-term goals?”
Annuity perspective
An annuity can help turn a financial windfall into stable, predictable growth. Fixed annuities can offer guaranteed interest rates, providing growth potential that’s protected from market downturns. For clients who may be hesitant to make big decisions right away, this is one way to help them preserve an inheritance and stay aligned with their financial goals.
4. “We just downsized. What should we do with the extra money each month?”
Your clients recently sold their home and moved into something smaller. They’re excited about the sale proceeds and wondering what to do with the savings from lower monthly costs.
Conversation starter
“Have you thought about redirecting some of that freed-up income toward building retirement savings that’s protected from market downturns?”
Annuity perspective
With fewer immediate expenses, it’s a great time to redirect funds toward accumulation strategies with long-term benefits. Putting the difference in an annuity can provide an income stream for life, helping ensure your clients won’t outlive their savings.
5. “I’m thinking of retiring early or at least moving to part-time.”
While most Americans report that they plan to retire at 65, 49% actually retire at 62.2 Whether it’s health-related, lifestyle-driven or the result of workplace change, early or phased retirement is becoming more common. But it often leaves clients asking how they may be able to help cushion the unexpected.
Conversation starter
“What would it mean to build a reliable source of income before it’s time to take Social Security or while your investments recover from market dips?”
Annuity perspective
Some annuities can offer guaranteed income that can help clients delay claiming Social Security to boost their benefit amount. Especially for Gen X and millennial clients who may not have employer-provided pension plans, this kind of guaranteed income can help fill that gap.
6. “We want to help our grandkids with college but aren’t sure how.”
A client in their early 50s just became a grandparent. They’re thrilled and starting to think about how they can help with future expenses or leave a legacy.
Conversation starter
“What if you could set aside money for their future that’s flexible and protected without locking it into strict education-only rules?”
Annuity perspective
While 529 plans are great, they come with restrictions. Some annuities can offer more flexibility plus protection from loss due to market downturns. It’s a way to contribute meaningfully without limiting how the funds can eventually be used, whether for college, a wedding or a first home. Keep in mind there may be a 10% penalty for withdrawals before age 59½.
7. “I just sold my business, now what?”
Selling a business or property is a milestone moment that often comes with mixed emotions and big questions about what’s next. There’s excitement, yes, but also pressure not to squander the opportunity.
Conversation starter
“Would it feel good to turn a portion of that lump sum into a guaranteed income stream — something that can keep growing even after the business is sold?”
Annuity perspective
Clients can use a portion of their proceeds to fund an annuity that helps provide tax-deferred growth or guaranteed income, depending on their goals. This can help their initial premium grow more quickly and preserve their lifestyle in retirement.
Life transitions as touchpoints for retirement planning
These conversation starters may align with what some clients are experiencing now, not someday. You could use life transitions as touchpoints for retirement planning: a job change, a new grandchild, the sale of a business or a shift in family responsibilities. Annuities can offer protection from market downturns, growth potential and income in each of these phases, helping clients feel more confident about their future no matter what life throws their way.
Life stages and opportunities for annuities
| Life stage |
Opportunity for annuities |
| Job change |
Rollovers |
| Inheritance |
Tax-deferred growth and protection |
| Empty nest/downsizing |
Accumulation with freed-up cash |
| Semi/early retirement |
Income bridging |
| Grandparent planning |
Flexible legacy funding |
| Business/property sale |
Income stream conversion |
Ready to turn these scenarios into action? Use our handy practice aid to walk clients through ways an annuity could support their next chapter.
Download client guide
Insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.
1Athene contracted Harris Poll to survey 1,024 adults aged 40-59 who provide financial support to at least one adult child (aged 18 and out of high school) living in their home without significantly contributing to household expenses, and who provide financial or caregiving support to at least one elderly relative. The survey was conducted between January 2, 2025, and January 19, 2025.
22024 RCS Fact Sheet #2. ©2024 EBRI/Greenwald Research Retirement Confidence Survey.
Guarantees provided by annuities are subject to the financial strength and claims paying ability of the issuing insurance company.
Any information regarding taxation contained herein is based on our understanding of current tax law, which is subject to change and differing interpretations. This information should not be relied on as tax, legal or financial advice and cannot be used by any taxpayer for the purposes of avoiding penalties under the Internal Revenue Code. We recommend that taxpayers consult with their tax or legal professional for applicability to the personal circumstances. Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.
Withdrawals and surrender of taxable amounts are subject to ordinary income tax, and except under certain circumstances, will be subject to an IRS penalty if taken prior to age 59½.
Not affiliated with or endorsed by the Social Security Administration or any governmental agency.
