
Amid concerns about the American economy and the possibility of recessionmost retirement savers want some kind of assurance that they won’t outlive their nest egg, according to recent reports.
As a result, application for pensionsthat provide a guaranteed monthly income stream like Social Security and pensions, has skyrocketed.
According to a new survey by Morning consultation for the American Council of Life Insurers, or ACLI.
“Retirement savers are clearly concerned about inflation and the overall economy,” said ACLI President and CEO Susan Neely.
More retirement plans to offer annuity options
THE adoption of the security law also made it easier for employers to offer annuities as a retirement savings plan option.
Going forward, insurance companies, asset managers, and employers are working to make these guaranteed lifetime income options more widely available through 401(k) and other defined contribution plans.
Starting in the fall, Fidelity will allow plan members to convert a portion of their retirement savings into an immediate income annuity to provide pension-like payments throughout retirement.

Loyalty investments is the largest supplier of 401(k) plans. The financial services company manages more than 35 million retirement accounts in total.
BlackRock and State Street Global Advisors, two of the largest asset managers, also announced target date funds with retirement income annuity options.
“As Americans live longer and healthier lives, their risk of outliving their savings is accelerating the ‘silent crisis’ of financial insecurity in retirement,” BlackRock chief client officer Mark McCombe said in a statement. communicated.
Having an annuity option at retirement is a good thing.
Caroline McClanahan
founder of Life Planning Partners
“Having an annuity option in retirement is good for people who don’t feel confident,” said Caroline McClanahancertified financial planner and founder of Life Planning Partners, based in Jacksonville, Florida.
But with any annuity, be sure to compare offers and fees, added McClanahan, who is also a member of CNBC Advisory Board.
Annuity sales hit record high in 2023
Annuity sales hit a record high in the first quarter of 2023, up about 50% from a year ago, according to Limra, an insurance industry trade group.
The annuity market benefited from market volatility, worries about the banking sector and a possible recession, as well as a rise interest ratewhich generally translates to insurers paying a better return on investment, according to Todd Giesing, assistant vice president of annuity research at LIMRA.
“Certainly annuity payouts are so much more attractive now,” said Keri Dogan, senior vice president of retirement solutions at Fidelity.
Dogan said she expects interest in annuities to continue to grow “because you get so much more for your money.”