The retirement challenge in the US has been talked about for a long time now, especially as 10,000 Baby Boomers reach the retirement age of 65 every day. The challenge comes from an insufficient level of savings which is complicated by lower interest rates for an extended period of time, along with the shift from defined benefit plans to defined contribution plans by the vast majority of employers. As a result, Americans are concerned they won’t have enough monthly income, or an income that will last as long as they live, to cover basic expenses. This is a great opportunity for a financial product that can transform cash put aside today or over time into a guaranteed stream of income for life.
It’s easy to ask why sales are struggling when there is such a demand for annuity products. Many carriers and experts close to the problem are creating new products and ideas. One such company, Blueprint Income, announced this week that they have seed investment to support their solution. They are looking to combine product innovation with a fresh and modern technology approach to attract customers who are looking to solve their retirement concerns.
It will certainly be interesting to watch how products like Blueprint Income’s Personal Pension are accepted by consumers, and, ultimately, how they take off. Regardless, it is clear the need exists, and traditional products and models aren’t fulfilling the demand. As carriers look to expand and increase annuity sales they will need to be more flexible with products and look to understand consumer experience to know how to best educate and present solutions to solve retirement concerns.