Hidden Doubts Cluster Behind Consumers' Retirement Confidence

And consistent with their longer expected life spans, far more women than men were worried about the possibility of having to fund their retirement past age 85, by a margin of 57% to 43%.

Men were far more at ease with investment risk than women, with 67% saying they were more comfortable with such risk than their spouse, compared to 30% of women who thought they were the one less anxious about financial risk.

For financial planners and advisors, the inconsistencies and uncertainties uncovered by the survey suggest a great market opportunity, says Ted Mathas, executive vice president of New York Life.

The combination of an expected long life and an admitted lack of understanding among pre-retirees about investment returns on savings adds up to a big gamble that many would be unwilling to take.

"Recognizing that risk, Americans planning their retirement are seeking professional advice on how to replace and supplement the guaranteed income streams traditionally provided through Social Security and corporate pensions," Mathas says.

The survey uncovered an intense need among many Americans for a way to provide a guaranteed lifetime income stream.

"There are significant implications for annuity selling," Mathas says, particularly for fixed annuities.

On the other hand, the survey suggests advisors also have a significant educational task ahead of them. Mathas points to the high number who think they can take out 10% or more a year from their savings. A far more realistic ratio would be 4% to 4.5%, he says.

"As people begin to understand the safe withdrawal rate, they'll increasingly be more interested in lifetime income with guaranteed rates," Mathas contends.

Agents will be able to reach this largely untapped market if they talk frankly to customers about prudent withdrawal rates from retirement savings and compare those rates to the 6% return currently offered by many fixed annuities, he says.

"At 6% interest [vs. a 4% withdrawal rate on the same amount], the difference is huge," says Mathas. At 6%, you'd have a 50% increase in disposable income. That makes a huge difference in how long your portfolio will last and the impact on your lifestyle."

The differences between men and women uncovered in the survey also are revealing, Mathas points out. Although men are also candidates for annuities, the findings point to women as the larger marketplace.

"Retirement planning is essentially a woman's issue," he says. That's because more women than men realize the potential problems longevity can create for their retirement savings.

"Women live longer, and the number over 65 will probably triple in the next 30 years," Mathas says. "By age 85, there will be twice as many women as men."

Men may in fact be generally no more informed about the issue than women, but like their widely recognized aversion to asking for directions, they may not be willing to admit they're lost, he points out.

"The good news is women don't know and are willing to admit it," Mathas says. "So, they are more open to advice and more receptive to going to advisors."