Read Time:
4-minute
article
Why Gen X and millennials are taking a fresh look at annuities
This content is categorized as:
Key takeaways:
- Gen X and millennials are more open to annuities than many financial professionals may think.
- The shift away from traditional pensions has placed more retirement income responsibility on individuals.
- Many Gen X and older millennial clients are navigating retirement with greater complexity and uncertainty.
- Financial professionals can help bridge the gap between interest and action through education, personalization and proactive planning.
- Positioning annuities within a broader retirement strategy can help clients better understand their potential role.
The retirement landscape has fundamentally changed, which means your role as a financial professional has too. As traditional pensions continue to disappear, the burden of building reliable retirement income has shifted to individuals.
That shift has introduced new complexity and uncertainty, but it’s also created a timely and significant opportunity for financial professionals.
A new era of retirement
For much of the 20th century, retirement planning was anchored by defined benefit pensions, but that foundation has shifted over time. Gen X is the first generation approaching retirement without widespread access to a pension safety net, and millennials are close behind.
As a result, individuals in their 40s and 50s are increasingly responsible for building and managing their own retirement income strategies. Compared with prior generations, many Gen X consumers tend to embrace a more self-directed, “DIY” approach to financial decision-making. That mindset can create a meaningful opening for financial professionals to provide clarity, education and support.
The retirement landscape has fundamentally changed, which means your role as a financial professional has too.
Meeting the transitional generation with a new approach
Many in this generation are in their peak earning years, but retirement is no longer a distant idea. It’s becoming more immediate and real.
With that can come a new set of questions:
There are solutions to these complex concerns. Annuities, for example, are uniquely positioned to help address these needs. Yet they remain underutilized among the Gen X and millennial audience.
An overlooked opportunity
One of the most persistent misconceptions in the industry is that younger generations aren’t interested in annuities. A new Athene-sponsored white paper, Solving the Annuity Puzzle for New Generations of Consumers, tells a different story:
| Audience |
Finding |
| Millennials |
76% report being somewhat to extremely interested in annuities1 |
| Gen X |
70% report being somewhat to extremely interested in annuities1 |
| Baby boomers |
61% report being somewhat to extremely interested in annuities1 |
Despite strong interest, adoption remains relatively low. Adding to the challenge, only about 40% of Gen X currently work with a financial professional.2
TIP: The result is a clear disconnect: interest is high, but action is limited. This isn’t a demand problem but a behavioral and educational gap.
Bridging the gap between interest and action
For financial professionals, the opportunity may lie in helping close the behavioral gap. Clients may be open to learning more, but they often need guidance and the confidence to act.
That starts with aligning solutions to real concerns:
| Client concern |
How annuities may help |
| Income |
Creating predictable, reliable cash flow in retirement |
| Longevity risk |
Helping ensure assets last for life |
| Market volatility |
Building stability in uncertain markets |
When annuities are framed through this lens, they can become more relevant and actionable.
Positioning annuities within a broader strategy
How annuities are introduced can matter. When presented as one way to help support retirement income needs, annuities may become easier for clients to understand and evaluate.
Rather than being discussed in isolation, they can be positioned as part of a broader strategy tailored to an individual client’s goals, financial situation, risk tolerance and retirement income needs.
That strategy may also include investments, tax considerations and risk management. Within a diversified portfolio, annuities may help provide a layer of dependable income that some clients use to support retirement income goals.
When annuities are framed through this lens, they can become more relevant and actionable.
Your role has never been more important
As responsibility for retirement income continues to shift, the role of the financial professional becomes more critical than ever. Education, personalization and proactive planning can be essential to helping clients navigate this new reality.
Gen X and older millennials are concerned, but often underserved. Financial professionals who recognize this gap may have an opportunity to help deepen client relationships while helping clients work toward meaningful outcomes.
Download the white paper
Download our white paper to learn more insights on how Gen X and millennials are thinking about annuities and how you can better serve them.
Download white paper
Find more insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.
