According to the Corebridge Financial Survey on Longevity, a surprising 54% of Americans want to live to age 100.
Living to age 100 is a lofty goal – but there’s a lot of financial prep work needed to make sure those 100 years aren’t years of financial stress. That’s where we come in.
Here are 5 key take-aways we can use to help convince people to start planning now for the future they want in 20, 30, 40, or even 50 years. Want to read the survey results yourself? Download Corebridge’s “Funding longer lives” white paper here.
1. Understand why people want to live so long
It’s not for bragging rights! According to the Corebridge survey, 72% of respondents want to spend more time with family and friends. It’s about building relationships that last and enjoying them as much as possible. The next highest percentage of respondents (65%) want to explore more and have more new experiences.
What does this mean for us? It gives us insight into how we should be talking about retirement planning. Instead of asking clients to set aside time to make a plan for managing their money, ask them to make a plan to be there for their grandkids’ weddings. Or for their 50th class reunion. Or for a destination vacation with siblings, cousins, in-laws, kids, grandkids, and great-grandkids to celebrate their 50th or 75th wedding anniversary.
Planning for “retirement” is scary and, let’s face it, boring. Planning so they’ll have money to travel into their 70s and 80s gives them a vision they can hold onto, a motivation that’s concrete rather than abstract.
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2. People fear running out of money more than death
A whopping 66% of respondents feared running out of savings more than they feared dying. That’s understandable – because without money, how are they going to travel, visit family and friends, or finally fix up that hot rod? Even on a modest budget, you need money to do all those things. Interestingly, even respondents with assets valued at more than $500,000 still fear those assets will run dry.
So how do we help them create the long, independent retirement they want?
- Annuities. This is the only way to create an income stream they can’t outlive. Period.
- Whole life insurance. Participating whole life offers dividends that create additional cash value, replenishing what they pull out for retirement funding. It also ensures they leave something for their loved ones without needing to reserve an inheritance from their existing retirement funds.
- Business succession solutions. Having a proper valuation and a succession plan in place keeps the business from falling apart when the owner retires or passes away. A life-insurance-based solution can also ease tension if only one child wants to take over the business, but the others need to be compensated equally. If the goal in living longer is to spend more time with family, we’re defeating the client’s purpose if we let family tension over solvable problems continue.
3. Only 27% of women feel confident they can make their retirement savings last
This shouldn’t be a surprise. Women who took breaks from the workforce to raise a family haven’t been able to sock away the same amount that someone who worked uninterruptedly for 20-50 years will have saved.
Plus, because women live longer, they’re more likely to exhaust their funds caring for a spouse, leaving them with less than ideal budgets for life on their own. It’s a bleak picture of the future – and one we can help prevent.
4. Clients want guaranteed lifetime income – but don’t understand it comes from an annuity
A whopping 92% of survey respondents want guaranteed lifetime income. 62% of those folks say it’s become even more important to them in the past year. The problem? They don’t understand that buying an annuity is all they need to do to achieve this. Only 46% said buying an annuity is a priority for them. That’s a huge disconnect.
Our work is cut out for us. We need to do a better job of educating consumers and making sure they know that an annuity = guaranteed income for life. Once they understand what they’re getting, we can have a more informed conversation about types of annuities, when to purchase, and potential add-ons like long-term care riders. None of those questions matter, however, until our clients know we have the solution that gives them exactly what they say they want.
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5. 63% of Gen Z respondents want to live to age 100
This generation has the highest percentage of respondents who want to live to age 100. Their reasoning is a little different than their older counterparts, according to the survey. Gen Z is excited about where the world is headed - they want to see what amazing new discoveries surface in the coming decades. But their biggest concern is quality of life. The good news is that time – and science – is on their side. Finding a way to cool our overheated planet? A cure for cancer? A way to live forever? Things that seem impossible to someone in their 60s or 70s today might become a reality for someone in their 20s. And that possibility is exciting to Gen Z.
So how does that help us? It’s another way to market to a growing audience. Gen Z wants to live to 100 to see what happens. So that’s how we sell our solutions to them. We’re here to help them fund their curiosity! Instead of talking about retirement planning, ask if they want to be around to see the first human colony on Mars. We have the tools and strategies that can make sure they’re living their best financial lives so they can enjoy the future rather than dread it. With smart planning, they can fund a retirement full of discovery and exploration.
Need help with quotes, illustrations, or selecting the right product?
Our Brokerage Managers - Dave and David - can help. They have incredible depth and breadth in terms of product knowledge. Call 800-823-4852 and ask for a brokerage manager, or click the button below to email us!
