An increase in life expectancies has prompted some U.S. insurers to scale back their contract guarantees.

According to The Cerulli Edge – Retirement Edition, a report from research firm Cerulli Associates, half of the insurers surveyed indicated they are planning to decrease the number of product offerings that include living benefits in the next three years. Another 27% said the number of offerings will remain the same.

Cerulli warned that one of the major retirement concerns is the possibility of investors outliving their savings, either because of insufficient accumulation or increasing life expectancies.

“Asset managers have realistic expectations for insurers' plans for guaranteed retirement income opportunities,” said Bing Waldert, director at Cerulli. “Managers may benefit from collaborating with insurers to design the next generation of retirement income products focused on placing the consumer back at the center of the value proposition, and emphasizing how it will help investors retire more securely.”

The Cerulli Edge – Retirement Edition examined alternative retirement income solutions, with a close look at the new retirement income products that exist outside the traditional scope of mutual funds and variable annuities with guaranteed riders, according to Cerulli.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.