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Will your clients’ retirement savings last as long as they do? It's a question on the minds of many financial professionals and their clients, and rightly so. In fact, according to 2022 data from Athene, over half (55%) of American adults are worried that they will outlive their retirement savings. Planning for retirement is a difficult and stressful time for your clients, and the uncertainty around outliving savings adds another level of complexity and anxiety.
As of 2020, American men were expected to live 75.1 years, and women 80.5 years on average, according to the National Center for Health Statistics. For a couple turning 65, this could mean another 19 years in retirement, if not longer. For many, the joy of an extended retirement can be overshadowed by the worry of financial stability during these years.
It is crucial to explore financial tools that offer both stability and certainty. Enter fixed-indexed annuities (FIAs) – a retirement solution that positions you as an architect of retirement for your clients, guiding them to build a retirement savings strategy so that they can experience the gratitude that comes with guaranteed income in retirement.
Create an income that can’t be outlived
At its core, an annuity is an insurance contract that brings a sense of financial security to your clients in an otherwise volatile market. The beauty lies in the guaranteed income that annuities can provide. FIAs become especially relevant when contemplating protection against market downturns, offering a shield against market losses and the ability to create a steady income through the retirement years, helping to mitigate the fear of outliving retirement savings.
FIAs can provide a reliable "retirement paycheck" that can last as long as your clients are retired. Athene's Ascent Pro and Agility products exemplify this concept with distinct features catering to different needs and preferences. Athene Ascent Pro, featuring a built-in rider (for an annual charge), is a customizable lifetime-income product, offering flexibility to tailor income to your clients’ specific financial needs as they think about their retirement savings journey.
On the other hand, Athene Agility acts as a deferred-income solution designed to leverage index performance. With a “stacking rollup” feature on the built-in rider (no annual charge), Agility presents an attractive option for you to help address your clients’ concerns around inflation, particularly in the current market environment, and can offer participating lifetime income that may increase based on any interest credits added to the contract as your clients spend more years in retirement.
Driving solutions
The strategic deployment of FIAs in retirement planning is not merely a response to your clients’ financial concerns, but a proactive move to help fortify their financial portfolios against pitfalls in the years to come. In this landscape of uncertainty, where Social Security benefits face potential reductions, and traditional retirement savings may fall short, it has become increasingly important for financial professionals to understand and present a wide range of retirement savings solutions to their clients. FIAs are a source of guaranteed income, helping to address your clients’ concerns about market fluctuations, inflation and healthcare costs in retirement.
Crucially, a 2023 nationwide poll conducted by Athene revealed that the economy caused more than two-thirds of Americans (69%) to rethink their retirement savings strategy. Market volatility can make guaranteed income more attractive than ever, highlighting the increasing importance of financial solutions that help provide stability as Americans seek to strengthen their portfolio.
As the retirement landscape continues to evolve, financial professionals need to be armed with strategic solutions for all their clients’ retirement needs. Products like annuities, and more specifically, FIAs, can redefine retirement narratives for your clients on their path to retirement. FIAs represent more than just financial instruments – they embody the potential for your clients to embark on a worry-free retirement, offering retirees the flexibility, customization, and protection needed to help create a secure and steady retirement income. As your clients embrace the next chapter of their lives, they can do so with the gratitude that comes from securing lifelong income.
Rod Mims is senior vice president, distribution at Athene.
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