Generation X members and young baby boomers with big nest eggs may be much more interested in hearing about annuities than older investors are, according to new survey data.
One problem: At this point, the number of Gen X investors with big nest eggs seems to be low.
The Alliance for Lifetime Income (ALI) and Cannex have put data supporting those possibilities in a report, on an online survey of 1,519 U.S. residents ages 45 through 75, that was made available to ThinkAdvisor.
The Pew Research Center has defined "Generation X" as including people born from 1965 through 1980 — meaning people that have turned, or will turn, 41 through 56 this year.
Baby boomers are turning 57 to 75 this year, meaning that many have already retired.
The full ALI-Cannex survey report does not include a breakdown for members of Generation X and baby boomers, but it does break out some of the data by age group.
The survey team found that the participants in the Gen X and young boomer age groups were much more interested in hearing about annuities than the participants in the older age groups.
About 41% of all of the participants said they wanted to hear more about annuities, but there was a sharp divide between those 55-59 and those 60-64 years old.
Here's how the percentage of participants who said they were at least moderately interested in buying an annuity for retirement income planning purposes varied by age group:
- 45-49: 58%
- 50-54: 57%
- 55-59: 55%
- 60-64: 37%
- 65-69: 30%
- 70-75: 19%
The Survey
An outside firm conducted the ALI-Cannex survey in April. All of the participants said they had at least $100,000 in investable assets.
A public summary of the survey report is available here.
