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Associated Press
20 hours ago
- Business
- Associated Press
Coalition for Annuity Awareness Collaborates to Strengthen Annuity Education, Awareness and Access
Washington, DC June 20, 2025 --( )-- As economic and financial uncertainties continue to dominate headlines, the Coalition for Annuity Awareness is working to help a growing number of Americans use annuities to combat common retirement risks by celebrating National Annuity Awareness Month each June. The group has spent more than a decade pursuing this initiative, building momentum through various marketing channels and communication mediums targeting distributors, annuity professionals, retirement savers, state governors and federal policymakers. Ultimately, the Coalition's goal is to provide free and unbiased information about the fundamentals of annuity products and their role in creating predictable lifetime income, and to reinforce the importance of giving Main Street Americans access to the valuable benefits they provide. One prominent event members of the Coalition hosted in support of these efforts was a Financial Security Caucus briefing 'A paycheck for life? It's a thing.' on June 17, 2025, in the 2168 Rayburn House Office Building on Capitol Hill. The purpose of the Caucus is to educate lawmakers about the ongoing need for public policy that encourages Americans to save more, plan ahead, and protect their financial and retirement security. 'Fifteen years ago when NAFA initially declared June as National Annuity Awareness Month, we had a vision for using our platform to provide tools and resources that our audiences could trust as they seek to educate themselves about annuities. Our Coalition partners have been integral to helping us transform this initiative into a movement,' said Chuck DiVencenzo, president and CEO of the National Association for Fixed Annuities (NAFA). 'Each year, we're pleased to see more stakeholders participating in the celebration and more hardworking Americans becoming aware of how valuable annuities can be in their accumulation, income and legacy planning.' NAFA is joined in the Coalition for Annuity Awareness by industry associations including the American Council of Life Insurers (ACLI), Finseca, the Insured Retirement Institute (IRI) and the National Association of Insurance & Financial Advisors (NAIFA), as well as a number of companies who provide support to those associations and their member companies. Additionally, a dozen Coalition member companies have also committed to sponsoring the National Annuity -more- Awareness Month campaign, including Allianz, American Equity Investment Life Insurance Company, AnnuaProfectus, Athene, Delaware Life, EquiTrust Life Insurance Co., MassMutual Ascend, North American, Reliance Standard, SILAC Insurance Company, The Index Standard and The Standard. The demise of traditional pensions, prominent longevity risk and potential unreliability of Social Security are all part of a growing challenge Americans face in preparing successfully for retirement. In fact, according to the National Institute on Retirement Security, approximately eight in 10 Americans across party lines agree that our nation is facing a retirement crisis. Despite the need for thorough preparation, current data from the Employee Benefit Research Institute indicates that 29 percent of workers have less than $25,000 saved for retirement. Given that Peak 65 is upon us — with more than 4.1 million Americans turning 65 each year through 2027, equating to more than 11,200 people retiring every day — it is clear there is work to be done to help more individuals attain retirement security. 'Life insurers put life into America through our economic investments and financial protection products. Annuities provide guaranteed income for life, offering retirees unparalleled financial security and peace of mind. And ACLI research shows that this stability allows them to delay receiving Social Security payments, ultimately saving the program $100 billion as the greatest surge of Baby Boomers retires,' said David Chavern, American Council of Life Insurers (ACLI) president and CEO. An increasing number of individuals and families are turning to insurance products and, specifically, annuities for positioning a portion of their assets to address future planning needs. According to LIMRA, annuity sales totaled a record-high $434.1 billion in 2024, driven by pent-up demand for investment options that offer a balance of protection and growth. Despite the growth in this market, the majority of Americans neither own nor understand annuities. In fact, LIMRA data indicates only 12 percent of U.S. households own an annuity, and the American College of Financial Services gave Americans a score of 12% out of a possible 100% for their knowledge of annuities in the school's Retirement Income Literacy Study. Current efforts to modernize the industry's educational initiatives and annuity sales processes are aimed at combating these challenges. 'Helping more Americans meet their retirement planning needs starts with innovation,' said Wayne Chopus, President and CEO at the Insured Retirement Institute (IRI). 'Through IRI's Digital First for Annuities initiative, we're driving a digital transformation in the way annuity products are marketed, sold, and serviced. By creating modern standards and fostering real-time integrations, IRI is helping to eliminate inefficiencies, increase accessibility, and provide better experiences for financial professionals and consumers.' In recent years, the industry has lauded efforts from Congressional leaders in both the House and the Senate for pursuing legislation that would provide workers with greater access to annuities in retirement planning. As part of National Annuity Awareness Month outreach, NAFA has led efforts to obtain proclamations from each governor declaring Annuity Awareness Month in his or her state, bringing policymaker education to the forefront of the campaign. Early adopters in 2025 -more- include the District of Columbia, Georgia, Illinois, Kansas, Missouri, Nebraska and Wisconsin with more than 30 states having supported this initiative since its inception. 'The American people face a $483 trillion retirement savings gap and a $240 trillion protection gap, according to Ernst & Young,' said Marc Cadin, CEO of Finseca. 'Annuities are a powerful solution — providing guaranteed, lifetime income that helps secure financial stability in retirement. As the voice of the financial security profession, Finseca works closely with leaders in Congress to protect and expand access to annuities so more hardworking Americans can gain peace of mind today and face life's uncertainties with confidence tomorrow.' 'NAIFA supports National Annuity Awareness Month as part of our commitment to helping Americans prepare for a secure financial future,' said NAIFA CEO Kevin Mayeux, CAE. 'Our members work every day to provide individuals and businesses with expert guidance, affordable financial products, and confidence in long-term planning. At the same time, NAIFA is working with Congress to advocate for sound tax policies that preserve the important benefits of annuities and ensure they remain a reliable option for retirement planning.' the official home of National Annuity Awareness Month, is filled with educational, product agnostic resources that financial professionals and consumers alike can use to better understand how annuities can help mitigate various retirement risks and complement other strategies in holistic plans for retirement. Those interested in engaging with National Annuity Awareness Month efforts are encouraged to follow along on LinkedIn, X, Facebook and YouTube under the @AnnuRetirement handle. About The Coalition for Annuity Awareness The Coalition for Annuity Awareness is comprised of industry associations who serve consumers by helping them understand annuity products. As today's challenging economic environment continues to evolve, a growing number of individuals and families are turning to annuities to help provide security for their retirement. Specifically, many consumers are using annuities as a vital risk management tool to protect themselves against the possibility of outliving their financial resources. Annuities are unique among financial products in the marketplace because they can provide retirees with a guaranteed lifetime income stream. Currently, there is approximately $1 trillion of in-force premium serving roughly 8 million Americans. The annuity market largely consists of middle-class consumers with a median annual household income of around $79,000 [1]. Roughly six in 10 annuity contracts are valued at $200,000 or less.[2] During 2023, life insurance companies paid $129 billion in annuity benefit payments, providing crucial retirement security to contract holders[3]. In addition, Americans deposited $383 billion in individual, group and supplementary annuity contracts. [1] 2022 Survey of Owners of Individual Annuity Contracts conducted by The Gallup Organization and Greenwald & Associates for The Committee of Annuity Insurers [2] 2024 Survey of Fixed Annuity Owners, conducted by Greenwald & Associates for NAFA [3] The American Council of Life Insurers (ACLI) Life Insurers Fact Book 2024 Contact Information: NAFA Chuck DiVencenzo - President & CEO 414-332-9306 Contact via Email Read the full story here: Coalition for Annuity Awareness Collaborates to Strengthen Annuity Education, Awareness and Access Press Release Distributed by
Miami Herald
14-05-2025
- Business
- Miami Herald
Workers struggle with one big problem when they retire
Many Americans may feel financially prepared for retirement, but the emotional transition and rising health care costs remain significant hurdles, according to a recent survey. The 2025 Trends in Retirement Planning survey report, released by the Financial Planning Association (FPA) and the Journal of Financial Planning with support from Finance of America, gathered feedback from 167 financial planners to offer insights into evolving retirement challenges. And here's what they found. Image source: Koslov for Unsplash There's a striking disconnect between financial and emotional preparedness. While over half of planners feel their clients are financially ready for retirement, only 11% believe those same clients are emotionally prepared. The survey found that nearly 60% of planners indicate clients are only moderately emotionally prepared, and 5% believe clients are not prepared at all. According to the report, clients often grapple with fears about: Adapting to no longer workingLosing their sense of identityPotentially becoming a burden to loved ones Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter "Studies show that while health and wealth are vital for a successful retirement, being mentally and emotionally prepared is more critical," said Mitchell Kraus, a certified financial planner with Capital Intelligence Associates. "No matter how financially ready an American is to retire, their retirement can lead to a shorter and less fulfilling final chapter if they are not emotionally prepared." Jim DeGaetano, a certified financial planner and author of "The Fruitful Retirement," draws this parallel: "The emotionality involved in leaving one's life work cannot be understated. In fact, as I discuss the four stages of retirement in my book, there is a similarity to the phases of grief and loss. Wealth advisers must understand how critically important it is for their clients." As a result, financial planners are increasingly going beyond managing money to help clients address these significant emotional and lifestyle adjustments. "Being emotionally prepared is almost as important as being financially prepared," said Kris Etter, a certified financial planner with Beacon Financial Planners. "Life does not stop happening just because you retire." Financial advisers across the country are developing innovative approaches to address the emotional aspects of retirement. Their strategies offer valuable insights for those planning this major life transition. Related: Medicare recipients face a growing problem David Demming, a certified financial planner with Demming Financial Services, believes in gradual transitions, recommending "phasing down rather than abruptly retiring to adapt emotionally as well as financially." Rather than a complete stop to working life, he strongly advocates for "partial employment" with a refreshing philosophy of "work for play, not pay." Building on this approach, Catherine Valega, a certified financial planner with Green Bee Advisory, emphasizes that having sufficient finances isn't the complete picture: "Even those with enough money – that is not enough to maintain health both emotional and physical during the possibly several decades spent in retirement." To address this gap, she's developing a practical solution to help people "test-run their retirement lives" before fully committing. Rob Schultz, a certified financial planner with NWF Advisory Group, reinforces this approach: "Scaling back work tends to be successful because it gives you a trial run at what it would be like and you can see if you like being retired without fully committing to it. Once you are out of the workforce, it can be tough to re-engage." While some advisers focus on transition strategies, others like Ed Snyder, a certified financial planner with Oaktree Financial Advisors, takes a proactive approach from the very beginning by asking "prospective clients in their first meeting what their retirement lifestyle looks like for them." This early visualization helps clients prepare mentally as he guides them to "imagine what kinds of things they will want to be doing" and consistently encourages them to "stay active and involved." Patti Black, a certified financial planner with Savant Wealth Management, frames this proactive approach by "encouraging clients to know what they are retiring to, not just what they are retiring from. What is their purpose in retirement, their reason to get up and get going every day?" She's even working to shift the perspective "from 'becoming a burden' to 'becoming a blessing.'" Taking this comprehensive approach even further, Juliette Williams, a certified financial planner with Wealthspire Advisors, thoroughly goes "beyond the numbers" with her clients. She facilitates deeper conversations through targeted questions including: "What does it feel like to spend your days and nights together, as opposed to only your evenings while you are working?""What does a regular day/week look like in retirement? How do you plan to spend your time?""How do you think you will feel about no longer being known as whatever it is they do for a living?" Marcos Segrera, a certified financial planner with Evensky & Katz/Foldes Wealth Management, takes an innovative linguistic approach by "intentionally reframing 'retirement' as 'repurposing'" to encourage clients "to view this significant life stage not as a passive cessation but as an active, deliberate redirection of their accumulated energy, wisdom, skills, experience, and passions towards new or redefined goals." Related: These are the most tax-friendly states if you work in retirement Williams summarizes the philosophy that connects all these approaches: "I often tell my clients that the numbers will work out because they've been working toward the numbers all of their lives. I want to ensure that the life part works out as well as the numbers." Edward Thomas, a certified financial planner with Savant Wealth Management, puts it even more succinctly: "It is more behavioral coaching than financial." Prepare emotionally and financially. Retirement is a significant life change that requires reflection on what life will look like beyond work. Consider hobbies, social connections, and how you'll structure your time. "Retirement readiness goes far beyond numbers," said Nathan Sebesta, a certified financial planner with Access Wealth Strategies. "Emotional preparedness and clarity on how you'll spend your time are just as vital." Laura Mattia, a certified financial planner with Wealth Enhancement Group, stresses the importance of personalized planning: "Decisions regarding retirement are not just about the number of years worked or the age they aim for. There is no formula or one-size-fits-all answer." She recommends a six-step approach that begins with exploring "plans in retirement to pursue a new or continued passion, utilize skills, stay social, build relationships, and maintain health." DeGaetano offers a helpful framework through his "A Happy Retirement Is Freedom" acronym, which covers five essential factors: Activities: How you'll spend your dayHealth: Staying active and healthyRelationships: Nurturing connections that bring joyIntention: Both spiritual and personalFinancial security: The foundation for freedom Kraus recommends starting early: "Start talking about retirement early. Ask clients from our first meeting what they would do if they didn't have to work anymore." He also suggests "trying out the activities they plan on doing at retirement" before fully committing to them. Acknowledge and address emotional adjustments. If the transition proves challenging, seek resources or support to navigate the emotional aspects, such as adjusting to new routines or finding purpose outside of work. Etter reminds retirees that understanding your financial tools and when to use them can help manage stress. Glenn Downing, a certified financial planner with CameronDowning, poses a crucial question to new retirees: "What are you going to do with yourself all day?" He notes that the response "tells me volumes. If I get a blank look back, I know that the retiree has only thought about the negative (i.e., not having to go to work) and not the positive (i.e., the opportunity to completely reinvest oneself)." "Ultimately, a successful retirement blends financial stability with purpose and proactive health and lifestyle planning," says Sebesta. Resources that can help would-be retirees become emotionally ready include the blog "The Retirement Manifesto" and the book "The Keys to A Successful Retirement" by Fritz Gilbert. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
