A group of 24 of the largest financial services organizations has come together to create a new organization, the Alliance for Lifetime Income, to educate the public and advisors about the advantages of lifetime income products like annuities, the nonprofit organization announced Thursday.
The organization, based in Washington, D.C., has a website that offers advisors and the public information and resources about funding retirement. The organization has conducted a survey that it says re-underscores the fact that many people in the United States risk running out of money in retirement.
“As a nation, we have vastly expanded 401(k)s and other retirement accumulation vehicles, but have not tackled the looming issue of securing retirement income,” Jana Greer, president and CEO of retirement for AIG, one of the group's founding companies, said in a statement. “Today’s longer life spans are a game-changer—they make running out of money in retirement a serious concern for millions of Americans. That’s why raising national awareness and changing the conversation from saving to retirement income has never been more important.”
The alliance has launched a campaign called “Protect Your Income. Retire Your Risk” that offers thought leadership, research, third-party expert views and tools, including a new educational website for consumers and financial advisors.
According to a survey the organization conducted of 750 adults age 45 to 72 with at least $150,000 of investable assets, 48 percent have no guaranteed income other than Social Security, which replaces an average of 40 percent of a person’s yearly income.
Of those individuals who have an annuity, 80 percent say they are confident they can weather market downturns, compared to 63 percent who do not have an annuity, the alliance said.
The alliance is made up of AIG, Allianz Life, AXA Equitable Life, Brighthouse Financial, Capital Group, Franklin Templeton, Global Atlantic, Goldman Sachs Asset Management, Invesco, Jackson National Life, JP Morgan, Lincoln Financial, Macquarie, MassMutual, Milliman, Nationwide, Pacific Life, Protective, Prudential, State Farm, SSGA, TIAA, Transamerica and T. Rowe Price. The companies offer annuities.