Have you ever experienced the solution to a problem being in plain sight, only to pass over it? The time for consumers to notice the obvious is coming for annuity products in 2022.
This will be the year that consumers proactively seek information and advice to explore the solutions that annuity products can provide, to address some of their financial challenges. The stars are fully in alignment, and a number of forces are driving increased interest in annuities.
One of the major criticisms of the annuity industry is that is has lacked a national, industry-funded advertising campaign aimed at educating consumers about the value of annuities. In recent years there have been several well-done national efforts, funded by certain life insurance companies and some trade organizations, that have promoted the value of annuity products.
In 2022, a confluence of demographic, regulatory and economic forces will spur a mammoth annuity awareness campaign.
Here are some of the new awareness campaign drivers.
1. The large number of people in or nearing retirement age.
In fact, as our society ages, by 2024 we will reach "Peak 65." This is the point in time when more Americans will turn age 65 than at any point in history, and the time they will likely end full-time work. These aging individuals have reached the pinnacle of the savings mountain and are looking to convert their accumulated nest eggs into income to fund their expected life span.
2. Provisions of the Secure Act requiring 401(k) and similar defined contribution workplace retirement plans to provide income estimates.
These provisions — which will require plans to send out notices referred to as "lifetime income illustrations" — will offer savers "a realistic illustration of how much monthly retirement income they could expect to purchase with their account balance," according to the rule.
These income disclosures will, for the first time, highlight the importance of lifetime income to over 600,000 plans and 60 million people who participate in 401(k) plans.
Participants will be introduced to the lesson that it is the income your savings will generate that is most important as you prepare for retirement. These disclosures will likely raise many questions and drive expanded education on saving, investment and lifetime income.
3. Moves by certain 401(k) administrators to make annuity income options available to their plan participants.
The impact of these Secure Act-buoyed annuitization option efforts cannot be underestimated. They should create significant interest and the need for education in generating lifetime income and the value of annuity products.
4. The growing awareness of most people under age 55 that they need new lifetime income sources.
Younger workers are now realizing their age cohort will not benefit from the pension plans that older workers now possess. They know that they need lifetime income, and that their employers will not provide it.
Harry N. Stout has been the president of Fidelity & Guaranty Life, deputy chief executive of Old Mutual Financial Network, and managing director of Insurance Insight Group. He is also the host of the 
