Investible Retirement Assets to Double by 2020
New LIMRA survey finds employment-based pension plan options declining while opportunities abound for financial services industry.
Insurance Networking News, February 4, 2013
The amount of investible retirement assets held by U.S. households over age 55 will grow to $22 trillion from $12 trillion in 2010, according to new LIMRA analysis of the “Survey of Consumers Finances,” by the Federal Reserve Board and U.S. Census projections.
While the number of people receiving income from employment-based pension plans is declining, there will be more retirees with retirement assets invested in retirement plans. The authors estimate almost two-thirds of those assets will be invested in products that generate retirement income.
“There is a huge opportunity for the financial services industry to help Americans identify how much income they will need in retirement, develop a plan for investing their portfolio to generate income, while continuing to grow their assets,” said Jafor Iqbal, associate managing director, LIMRA Retirement Research. “We are witnessing financial services firms changing the structure and business model to accommodate more customer-centric information and process, promoting uniform tools and services across the institutional and retail businesses to capture rollovers, emphasizing smooth transition of assets from the savings in institutional plans to retail side of the business where most retirement income products and solution are typically available.”
The research was published in LIMRA’s “Retirement Income Reference Book,” which was published in December 2012, and includes the most recent LIMRA data, projections and research on retirement income market.
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