The Writing’s on the Wall: It’s Time For AnnuRetirement
May 15, 2015 by Lee Stiegemeier
With Americans facing the growing challenge of successfully planning for retirement, the need for annuities in financial portfolios has never been greater. At the same time, our industry continues to face state and federal regulatory and legislative hurdles that make it critical that we work together to protect the product; the professionals who sell, wholesale and support annuities; and, ultimately, consumers.
As these two realities converge, we must work together to increase annuity education and awareness for three key audiences: elected officials, industry professionals and consumers. Only with a commitment to this objective can we help Americans build confidence in protecting their futures and enjoying “annu” kind of retirement.
One way people are coming together to achieve this goal is by declaring June as National Annuity Awareness Month (NAAM).
As part of NAFA’s mission and vision, the organization determined in 2010 a month should be dedicated specifically to educating individuals on the important
role of annuities as part of a secure retirement savings plan.
In just a few short years, the NAAM initiative has come a long way.
Last spring, NAFA joined several other industry associations and supporting organizations to form the Coalition for Annuity Awareness. Members agreed to work together to emphasize the importance of NAAM and to ensure consumers have access to factual information, free of charge, to use in making more informed decisions about their financial and retirement planning. June 2014 marked the inaugural National Annuity Awareness Month and was celebrated with great success. Coalition members provided educational material, webcasts and social media communications to help educate financial professionals and the public on the important role annuity products play in helping Americans save for retirement.
This year, the Coalition is taking access to these educational materials one step further with the launch of AnnuRetirement.com. This new website will serve as home base for National Annuity Awareness Month and all the initiatives held in conjunction with it. What’s more, AnnuRetirement provides a forum for helping the Coalition expand its educational efforts to target elected officials.
Making the NAAM Mark Permanent
When visiting AnnuRetirement.com,
individuals will have the opportunity to sign up in support of National Annuity Awareness Month and receive news and updates tailored to their specific audience segment. This will include notifications of new materials and resources visitors can use to educate themselves and others about the features and benefits of annuities, as well as events taking place at the local, state and national level pertaining to these products. Furthermore, the resources will be identified by user group so that every visitor can make the most of his or her time on the site.
Elected Officials
A number of prominent political figures – including President Obama, numerous members of Congress and those appointed by the President to serve on the Middle Class Task Force – have shared their support for Americans using annuities as a strategy for accumulating tax-deferred savings while generating a lasting income stream in retirement. In fact, during a Senate Finance Committee hearing held May 21, 2014, Stephen C. Goss, chief actuary of the Social Security Administration, stated, “If workers desire to have lifetime retirement income of 70 to 80 percent of earnings during their career, or near retirement, then they need to save more and purchase more life annuities.” Additionally, these leaders point to the need for consumer access to tools and resources that can assist in the planning process while helping individuals achieve their long-term financial goals and secure their future.
Yet, we are currently facing issues such as a push for a universal fiduciary standard, tax reform, and the expansion of QLACs to include indexed annuities, which prove that additional education efforts must be made. NAFA is working to obtain gubernatorial proclamations declaring June as National Annuity Awareness Month in each state. Furthermore, the Coalition will be pooling its resources to provide educational pieces on the website that state and Congressional legislators alike can use in making decisions that positively impact the annuity industry and are in the best interests of constituents.
Industry Professionals
From carriers and independent marketing organizations (IMOs) to annuity sales professionals, this group of individuals possesses great knowledge of annuity products and the impact they can have on consumers’ futures. However, industry professionals also bare the most responsibility in providing education regarding the features and benefits of annuities.
The Coalition is working to provide materials that IMOs and carriers can use to help producers heighten their knowledge of the many roles these products can play in helping consumers achieve their accumulation, income and legacy planning goals. Furthermore, AnnuRetirement will feature materials that annuity sales professionals can use directly with clients and prospects to enhance the educational process.
Consumers
Market volatility, the demise of traditional pensions, the uncertainty of government assistance programs like Social Security, and rising life expectancies are all part of today’s retirement planning challenge for Americans. Despite the need for thorough preparation, studies from the Employee Benefit Research Institute indicate that 52 percent of workers have less than $10,000 saved and only 18 percent of working Americans feel very confident about having enough money to live comfortably throughout their retirement years.
To help address these issues, an increasing number of individuals and families are turning to insurance products and, specifically, fixed annuities. Because a fixed annuity is the only product that allows individuals to accumulate retirement savings, protect those savings from market losses, and guarantee income for life, it is imperative that consumers have knowledge of and access to these products. Given the amount of misinformation about annuities in the media and elsewhere, AnnuRetirement will serve as a trusted resource for consumers to access unbiased, factual, educational information.
With the help of this new website, the writing is on the virtual wall — AnnuRetirement has arrived.
Visit AnnuRetirement.com today, and sign up to help us further the National Annuity Awareness Month cause.
WHAT IS NATIONAL ANNUITY AWARENESS MONTH?
The retirement landscape in the United States is ever-changing. Individuals are living longer, working longer and needing income longer. Currently, more than 10,000 baby boomers on average are turning 65 each day and tasked with identifying how to plan financially for their golden years. Beyond this generation, younger adults are looking for ways to protect their assets, while enjoying some of the market’s upside potential.
All of these reasons and more signify the prominent need for increased awareness and understanding of annuities. This is why the Coalition for Annuity Awareness has declared June as National Annuity Awareness Month.
Leading up to June 2015, the Coalition will be working toward gaining gubernatorial support through proclamation signings in each state and, ultimately, a resolution in the House or Senate declaring June as National Annuity Awareness Month.
These powerful products aren’t what they used to be; rather, annuities are becoming a staple in retirement plans for young and old alike. Show your support for National Annuity Awareness Month by completing the form below to receive news and updates throughout the coming months. Or, write your state governor or members of Congress to encourage their support!