Jackson Releases Proprietary Research on Retirement Spending Attitudes of the “Golden Generation”
December 06 2022 - 4:05PM
Business Wire
Findings demonstrate pension owners have a
propensity toward annuities; reveal opportunity to better educate
retirees on the value of guaranteed income solutions
Jackson National Life Insurance Company (Jackson®), the main
operating subsidiary of Jackson Financial Inc. (NYSE: JXN), today
announced the results of recent quantitative surveys1 that reveal
insights into how people at or near retirement age are planning for
their financial futures. The proprietary research surveyed
investors ages 50-80 (the “Golden Generation”) who were either
retired with, or planning to retire within 10 years and on target
to have, $250,000 or more in financial assets. Several themes
emerged, including understanding a cohort of people who value
certainty so much they organize their lives around obtaining it, as
well as a counterintuitive difference between self-identified
“spenders” and “savers” related to retirement.
“In many ways, the Golden Generation serves as a strong model
for all Americans who hope to achieve financial freedom for life,”
said Aileen Herndon, senior vice president of Distribution
Marketing for Jackson National Life Distributors LLC (JNLD), the
marketing and distribution business of Jackson. “Our research
demonstrates many in the Golden Generation have made smart,
intentional decisions leading up to their ‘golden years’ — such as
living within their means and placing a high value on guaranteed
income through retirement — allowing them to worry less about their
finances once exiting the workforce.”
Key takeaways from the research include:
- Members of the Golden Generation have sought employment that
offers a pension benefit.
- 76% of Golden Generation retirees have pensions compared to 59%
of retirees overall.2
- 58% of Golden Generation pre-retirees have guaranteed pensions
vs 20% of workers overall.3
- People with pensions are more likely to purchase an annuity to
ensure a sufficient amount of guaranteed income in retirement.
- Out of the segment of annuity owners who claimed they purchased
the product “to ensure sufficient guaranteed retirement income,”
37% had a pension compared to 31% who did not own a pension.
- There are surprising differences in the preferred retirement
solutions between those who self-identified as “Spenders” and
“Savers.”
- While it is rational to assume spenders would gravitate toward
retirement solutions that enable consistent purchases — such as
pensions and annuities with guaranteed lifetime income — the
opposite is true: spenders are less likely than savers to have a
guaranteed source of income.
- 49% of mid-retirement4 savers prefer the safety of purchasing
protected income compared to only 27% of mid-retirement
spenders.
- 75% of early retirement5 savers own a pension vs. 55% of early
retirement spenders.
- 83% of mid-retirement savers own a pension vs. 64% of
mid-retirement spenders.
- Although basic demographics such as gender, overall wealth and
the act of working with a financial professional are similar
between spenders and savers, 17% of savers are “not at all worried”
about living past their average life expectancy, while only 9% of
spenders report a similar lack of concern. Furthermore, 14% of
savers are extremely confident they have the savings to finance
living an extra 10 years, while only 6% of spenders feel the
same.
Glen Franklin, director of research and customer insights for
JNLD, commented, “Our research revealed the paradoxical finding
that those without pensions are less likely to see the value of
guaranteed income — despite having a greater need for it.
Guaranteed income is often marketed as a way to spend without
worry; however, our research demonstrates it would be more
effective to describe guaranteed income to this demographic as a
way to protect savings. This presents a significant opportunity for
financial professionals to continue educating their clients on the
value annuities and protected lifetime income can provide in
retirement.”
Financial professionals who would like to learn more about
Jackson’s product offerings can contact the company at
1-800-711-7397, connect with their local wholesaler or visit
https://www.jackson.com/annuities.html.
ABOUT JACKSON
Jackson® (NYSE: JXN) is committed to helping clarify the
complexity of retirement planning—for financial professionals and
their clients. Through our range of annuity products, financial
know-how, history of award-winning service* and streamlined
experiences, we strive to reduce the confusion that complicates
retirement planning. We take a balanced, long-term approach to
responsibly serving all our stakeholders, including customers,
shareholders, distribution partners, employees, regulators and
community partners. We believe by providing clarity for all today,
we can help drive better outcomes for tomorrow. For more
information, visit www.jackson.com.
*SQM (Service Quality Measurement Group) Contact Center Awards
Program for 2004 and 2006-2021, for the financial services
industry. (To achieve world-class certification, 80% or more of
call-center customers surveyed must have rated their experience as
very satisfied, the highest rating possible).
Jackson® is the marketing name for Jackson Financial Inc.,
Jackson National Life Insurance Company® (Home Office: Lansing,
Michigan) and Jackson National Life Insurance Company of New York®
(Home Office: Purchase, New York).
Before investing, investors should carefully consider the
investment objectives, risks, charges and expenses of the variable
annuity and its underlying investment options. The current contract
prospectus and underlying fund prospectuses provide this and other
important information. Please contact your financial professional
or the Company to obtain the prospectuses. Please read the
prospectuses carefully before investing or sending money.
Annuities are long-term, tax-deferred vehicles designed for
retirement. Variable annuities involve investment risks and may
lose value. Earnings are taxable as ordinary income when
distributed. Individuals may be subject to a 10% additional tax for
withdrawals before age 59½ unless an exception to the tax is
met.
Annuities are issued by Jackson National Life Insurance Company
and in New York by Jackson National Life Insurance Company of New
York. Variable annuities are distributed by Jackson National Life
Distributors LLC. May not be available in all states and state
variations may apply. These products have limitations and
restrictions. Contact Jackson for more information.
Guarantees are backed by the claims-paying ability of the
issuing insurance company.
________________________________
1 The quantitative research was conducted
during the fourth quarter 2021 to the third quarter 2022.
2
https://www.federalreserve.gov/publications/2021-economic-well-being-of-us-households-in-2020-retirement.htm
“Well-Being of U.S. Households in 2020”, U.S. Federal Reserve, May
2021. See page 70, table 22, All Retirees, Pension income.
3
https://crsreports.congress.gov/product/pdf/IN/IN11659 "Retirement
Assets in 2020", Congressional Research Service, May 6, 2021. See
page 4, table 1, Civilian Employee, Participation, Defined Benefit
plan.
4 Approximately 13.3 years retired
(mean)
5 Approximately 5.5 years retired
(mean)
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Courtney Sipperley courtney.sipperley@jackson.com
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