A recent Time magazine poll reports that approximately one in four Americans say they don’t plan to ever retire. Clearly the Rolling Stones are a great example of this but believe it or not, they’re also playing a role in helping fans better prepare for this new ‘retirement’ life phase by not only serving as role models, but actually spot-lighting a new non-profit that is 100% dedicated to preparing people financially for what they’ll need.
Imagine my surprise after recently presenting at a financial conference to hear the next speaker take the stage to the Stones’ iconic song, ‘You Can’t Always Get What You Want’ to which he then announced that his company was the main sponsor of the Rolling Stones 2019 “No Filter” U.S. tour! Now the Stones don’t usually have corporate sponsors, but because this entity was a non-profit and had a message that resonated with the band — and the band believed their fans too, the Alliance of Lifetime Income got their name in lights, so to speak – and as a result, a lot of people are learning a lot about retirement planning in the process!
The Stones clearly personify longevity … both Mick Jagger and Keith Richards are 76, drummer Charlie Watts is 78, and guitarist, Ron Wood is the band’s junior senior member, so to speak – at 72. Collectively they’re an amazing 302! Crazy, right? I know, you’re probably wondering how they’re even still alive, let alone still out on tour! But as a result of their extraordinary longevity and continued rock and rolling, they’re shining a bright light on how long people are living — and proving that retirement is still about doing what you love – regardless of age!
While retirement definitely requires planning, it’s hard to believe the Stones actually planned to still be performing at this age in their lives. But what’s likely most important to most people, is how to maintain their same pre-retirement standard of living in retirement. Clearly these economics are not an issue for the Stones, but for the majority of Americans, it definitely is.
The Alliance for Lifetime Income is committed to generating awareness and encouragement on educating consumers on the importance of guaranteed lifetime income because based on their polling of Americans, we’re facing a retirement crisis. The Webster Dictionary defines a crisis as a time of intense difficulty, trouble, or danger; a time when a difficult or important decision must be made. And based on the Alliance’s research, seems this crisis is confirmed.
According to their research, 2 out of 3 U.S. households have no source of protected monthly income other than Social Security. And the Social Security Administration states that Social Security alone will cover only about 40% of the average retiree’s income needs. Additionally, only 14% of private sector employees are covered by a pension. So with a decline in defined benefit pension plans, increased longevity, rising healthcare costs, a vulnerable social security system, market volatility, and memories of the 2008 financial crisis, a lot of people are facing one of the most positively anticipated times of their life with anxiety and concern. Yet even with all these concerns, there’s clearly a conversation gap between consumers and the financial industry as to how to best address this.
The Alliance for Lifetime Income is dedicated to bridge this gap and in the process, here’s what they discovered in their consumer research:
- 81% of consumers want some protection from significant loss in their portfolio;
- 60% believe it’s important to have a product that guarantees income to cover the essential expenses;
- 90% believe financial advisors have a responsibility to offer such products – yet only 28% of financial advisors actually do!
As to the Alliance’s research among financial advisors, they found:
- 84% agree their clients are concerned about income planning;
- And 91% claim they frequently address this issue with their clients;
- 68% agree a protected lifetime income source should be part of every client’s portfolio – but say clients only ask about annuities 24% of the time.
Clearly there’s a disconnect between consumers and financial advisors, but perhaps it’s more a misperception – annuities aren’t offered because the common knowledge is that the public doesn’t like them. But in actuality, only 14% of consumers have a negative perception of annuities.
Regardless of how we got to these assumptions, what matters most is providing factual information to help consumers make the right choices – and they definitely need the help because while many believe they’re making efforts to prepare for retirement income, only half expect their savings will last … and even that they say is their hope, not a guarantee.
The financial industry has made great strides in creating new products to help consumers plan and enjoy the retirement years they’ve worked so hard to achieve … and the Alliance of Lifetime Income is helping bridge the gap by educating people about guaranteed income to protect their retirement so check out the Alliance’s website, RetireYourRisk.org to learn how we can all rock like the Stones and ‘Get What We Want and Need’!
