Alliance Research: PRIP 2021 and 2022
Bridging the Gap in Retirement Planning PRIP 2021 and 2022 Highlights
tHe 2021 and 2022 Protected Retirement Income and Planning (PRIP) studies, highlighted a growing concern among Americans aged 45–75 about the sustainability of their retirement income, especially in the face of diminishing private pensions and economic volatility. A significant number of investors expressed interest in annuities as a means to secure guaranteed lifetime income. However, a consistent disconnect was observed between investor desires and financial professional perceptions, emphasizing the need for more aligned and informed retirement planning strategies.
Prip 2022 – Chapter 2: Americans Feel Unprepared for Retirement Amid Recession Fears
As recession concerns mount, only 48% of Americans believe their retirement savings will last their lifetime—a 13% decline from the previous year. In contrast, 74% of annuity holders feel confident about their financial longevity. Despite this, nearly half of consumers report that their financial advisors have not discussed protected income strategies, indicating a pressing need for more comprehensive retirement planning discussions.
To learn more about the findings from the second cut of the third installment of the Protected Retirement and Income Planning study, visit the links below:
PRIP 2022 – Chapter 1: Inflation and Recession Top Retirement Income Concerns
The 2022 PRIP study found that 81% of Americans aged 45–75 are concerned about inflation eroding their retirement spending power, while 79% fear a recession’s impact on their income. In response, 60% have reduced their spending. Notably, 78% of financial professionals have adjusted their retirement planning approaches, with a third more likely to recommend annuities amid economic uncertainties.
To learn more about the findings from the third installment of the Protected Retirement and Income Planning study, visit the links below:
PRIP 2021 – Chapter 2: Investors Choose Annuities Over Traditional 60/40 Allocation
When tasked with constructing a hypothetical $1 million retirement portfolio, investors allocated 13% to annuities, favoring them over traditional bonds. A significant 85% expressed interest in annuities that guarantee lifetime income. However, only 18% of financial professionals believed their clients were extremely interested in such products, highlighting a substantial perception gap.
To learn more about the findings from the second installment of the Protected Retirement and Income Planning study, visit the links below:
PRIP 2021 Chapter 1: Generation X Turning to Annuities as Private Sector Pensions Disappear
The inaugural PRIP study revealed that 71% of investors under 55 are interested in purchasing annuities, viewing them as alternatives to diminishing private sector pensions. Despite this interest, a disconnect persists, with only 39% of financial professionals recognizing the importance of income protection, compared to 55% of investors. This gap underscores the need for advisors to align more closely with clients’ retirement income priorities.
To learn more about the findings from the first installment of the Protected Retirement and Income Planning study, visit the links below:
ABOUT THE SURVEY
The Protected Retirement Income and Planning (PRIP) study, a collaborative effort between the Alliance for Lifetime Income and CANNEX, offers annual insights into the retirement preparedness of Americans aged 45–75. Through comprehensive surveys of both consumers and financial professionals, PRIP explores attitudes toward retirement income strategies, highlighting trends, concerns, and the evolving role of annuities in ensuring financial security during retirement.