USAA Survey Shows Concern Around Retirement Plans and Lack of Knowledge about Annuities

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Jun 15, 2023, 13:36 ET

SAN ANTONIO, June 15, 2023 /PRNewswire/ -- Nearly half (49%) of Generation X and Millennials, ages 35-54, feel they will never be able to afford to retire, according to a new USAA Life Insurance Company survey. Additionally, the survey finds overall, four in ten adults over the age of 18 are concerned about their retirement savings.

Life insurance can offer families protection if there is a sudden loss of an income earner or caregiver, while annuities can protect long-term financial goals especially late in life. In the U.S., 42% of adults believe they are most likely to die from old age. Like life insurance, annuities are designed to protect you from risks that might be difficult to manage by yourself.

But who actually knows what an annuity is? USAA's survey found nearly six in ten (58%) adults believe an annuity is a way to save for retirement – meaning four in ten do not really know what an annuity is (42%).

An annuity is a type of insurance that guarantees you'll get a stream of income for as long as you're alive, or for the amount of time you choose. They can also provide guaranteed interest rates and tax deferred growth without stock market volatility. More than three-fourths (79%) of adults surveyed say it is more important to have a guaranteed monthly income in their retirement than a particular dollar amount saved.

Additional findings from the 2023 survey include:

Older adults are more likely to correctly identify annuities as retirement savings. A majority of those ages 35-54 (54%) and 55+ (75%) say annuities are retirement savings, whereas adults 18-34 are more likely to say they don't know (32%).
Among younger adults 18-34, a majority say a guaranteed monthly income is more important (73%) and would choose monthly payments from the lottery (65%).

June is designated as Annuity Awareness Month. Take a minute to educate yourself and understand if annuities are right for your retirement plans.

About USAA's Life Insurance & Retirement Survey
This research was conducted by KRC Research via an online omnibus survey among a representative sample of n=1,114 adults 18 years of age and older. This survey was conducted on May 26-29, 2023.

The following methodology statement can be used in press releases and articles that speak about these results: KRC Research conducted the USAA Life Insurance & Retirement study using an online omnibus survey of n=1,114 U.S. adults ages 18 and older. The study fielded between May 26 and May 29, 2023.

About USAA
Founded in 1922 by a group of military officers, USAA is among the leading providers of insurance, banking and investment and retirement solutions to nearly 13 million members of the U.S. military, veterans who have honorably served and their families. Headquartered in San Antonio, Tex., USAA has offices in eight U.S. cities and three overseas locations and employs more than 37,000 people worldwide. Each year, the company contributes to national and local nonprofits in support of military families and communities where employees live and work. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.

Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.

Contact: USAA Media Relations
[email protected]
210-498-0940
USAA on Twitter: @usaa

SOURCE USAA