Millennials Are Hungry for Growth and Protection Potential, According to Lincoln Financial Group
In conjunction with Annuity Awareness Month, new data says 80% of millennials surveyed are pursuing products like annuities that offer opportunities for growth and protection 1
Since the start of the Great Recession in 2008, annuity ownership among millennials has increased significantly and has continued to rise.2
In recognition of Annuity Awareness Month, Lincoln Financial shares how annuities can offer younger investors the growth potential and downside protection they’re seeking, with optional benefits and riders to custom-fit their unique retirement income goals.
Ready, Set … Grow!
Annuities with additional cost benefits offer guaranteed growth potential and provide investors with lifetime income they can use to help maintain their lifestyle in retirement. This growth potential is a key feature of annuities, with different options and benefits to customize the growth that best suits the investor. Like buying a car or house, these options allow them to select the features that are most important and valuable to them.
A quarter of younger investors surveyed agree that an annuity is a better option for growth opportunities in the current interest rate environment than a savings account.2 Yet, only 12% were aware of the opportunity for tax-deferred growth provided by an annuity.1 With an annuity, the buyer’s money can grow tax-deferred until it is withdrawn, maximizing the investment’s growth potential.
The Power of Protection
The majority of millennials surveyed are most concerned about volatility (61%) and market loss (63%).1 Annuities with benefits can help ensure that retirement income is protected even when there are downturns in the market – providing income protection is unlike other insurance products.
Seifert continued, “Younger investors may have been affected by financial loss first-hand, given the uncertainty of the last few years and, before that, the market volatility during the Great Recession. Through various product features including triggers, annuities offer protection against loss during periods of market uncertainty, and opportunities for growth during rebounds.”
Visit the Lincoln Financial Newsroom for more educational content throughout Annuity Awareness Month.
Lincoln Financial offers a broad and innovative portfolio of annuity solutions, which were recognized in 2021 by Barron’s for the fifth consecutive year in its “The 100 Best Annuities for Today’s Market” feature.
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Important Information:
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent professional as to any tax, accounting, or legal statements made herein.
Annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal.
Lincoln annuities are issued by
All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.
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1 Consumer Insights,
2 Understanding the Younger Annuity Buyer & Purchase Experience,
View source version on businesswire.com: https://www.businesswire.com/news/home/20220601005444/en/
Media:
Sarah.Boxler@lfg.com
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