Annuity Alliance works with consumers to connect them with financial professionals who can assist with helping them get ready for retirement and also make an informed decision about selecting an annuity to provide security throughout their retirement years.

Are people getting ready for retirement? Here’s the state of the retirement market based on research performed by the Secure Retirement Institute.

• The retirement market is growing at a rapid pace. Today there are 55 million retirees in the United States, representing 19% of the current U.S. population. By 2030, there will be 71 million retirees, making up 20% of the total U.S. population.
• Retired or partially retired Americans hold 48% of all investable assets in the U.S., amounting to more than $22 trillion.
• Among retirees and pre-retirees, average savings in retirement accounts were nearly $400,000.
• Today’s retirees derive 60% of their income from Social Security and pensions. Future retirees, who are less likely to have pensions, will need to rely on savings and investments to generate income.
• More than half (55%) of non-retirees ages 40 to 54 expect their 401(k)s, IRAs, and other personal savings will be their primary sources of retirement income These assets represent approximately 20% of current retirees’ income.

How are a majority of workers saving for retirement?

• In total, 83% of U.S. workers report saving for retirement. Men were more likely to say they were saving for retirement than women (87% versus 78%).
• Today, 71% of U.S. workers (99 million) have access to workplace retirement saving plans. Approximately 55% of U.S. workers (77 million) participate in their workplace retirement plans.
• Just half of American households own a retirement plan balance in an IRA and/or a DC plan.
• Having access to an employer-sponsored retirement plan significantly improves the likelihood of workers saving for retirement. The top five reasons workers give for why they began saving for retirement:
  • Employer offered a retirement saving plan — 37%
  • Employer offered to match my savings — 28%
  • Started my first job — 22%
  • Employer automatically enrolled me in a retirement savings plan — 20%
  • Started a family — 15%
• For working Generation Xers and Baby Boomers (ages 42-75), 26% say they have less than $50,000 saved for retirement. Two thirds of this group save less than 10% in their employer-sponsored retirement plan and 37% save less than 5%.
• Only 55% of U.S. workers are confident they know how much they should be saving for retirement. Confidence levels decline for women and younger workers.
• Among those with any savings, the median retirement savings amount is $64,000.

Are you looking to leverage the benefits of an annuity for your retirement strategy? Please contact an Annuity Alliance representative to learn how you can make an educated decision about purchasing the annuity that best fits your needs.

This article is distributed by the Secure Retirement Institute.