Industry News

News > Industry > 2018-Industry > LIMRA Secure Retirement Institute: More than Half of Consumers Would Choose Guaranteed Lifetime Income Over a Lump Sum Payment

LIMRA Secure Retirement Institute: More than Half of Consumers Would Choose Guaranteed Lifetime Income Over a Lump Sum Payment

October 25, 2018

LIMRA Secure Retirement Institute (LIMRA SRI) least $100,000 in assets would choose guaranteed lifetime income of $660 monthly over a lump sum of $120,000 when offered in a hypothetical situation. When asked why they would take the guaranteed lifetime income rather than the lump sum, 57 percent said it was because they expected to live long in retirement and 46 percent said it was because it would provide them with peace of mind.

Those who favor lifetime-guaranteed payments over a lump sum are generally not willing to change their preference when the value of the lump-sum offered is increased. When asked to select the minimum value the lump sum would need to be in order for them to choose it over the guaranteed lifetime income, nearly half (46 percent) say that they would never switch to the lump sum.

For those who chose to receive the lump sum, almost two-thirds say it was to maintain control over the funds and almost 3 in 10 say it is because they already have enough guaranteed lifetime income from other sources. LIMRA SRI finds that 36 percent of pre-retiree and retiree investors plan to use guaranteed lifetime income to cover their basic living expenses while using non-guaranteed income sources to cover the rest of their expenses in retirement.

Read Full Article

Industry News Archives

Get a Quote Today