Will Boomers Outlive their Resources?
(Hartford, CT) June 14, 2005 – The potential for Baby Boomers to outlive their money in retirement has increased dramatically, creating great uncertainty for many, even as they live longer. According to a new study by Conning Research and Consulting, Inc., this market condition presents a prime opportunity for insurers to educate consumers about their longevity risk, and position their products and services as the best solution to manage that risk.
“Some Baby Boomers have already entered early retirement, and others are fast approaching retirement age at a time when longevity risk could drastically reduce their ability to afford a lifestyle they dreamed about,” said Terence Martin, analyst at Conning Research & Consulting, Inc. “In the Boomer’s lifetimes, there has been a substantial decrease in defined benefit pension plans, with little offsetting increase in personal savings or in educating the pre-retiree to effectively plan for their retirement.”
The Conning Research study, “Changing Times in the Retirement Market: Growing Longevity Risk, Growing Opportunities,” presents financial issues facing future retirees, along with an assessment of the insurance industry’s product innovations, competitive positioning versus the mutual fund industry, and future opportunities.
“Our study presents an actuarial balance sheet for the retiree, and analyzes the economics of the insurance buying decision in light of that,” said Stephan Christiansen, director of research at Conning Research. “The insurer is the only financial entity that can ensure a lifetime monthly income stream for the retiree, but the insurance industry has not yet done a great job at getting its message across to the market. The industry’s ongoing product innovation needs to be communicated more effectively.”
“Changing Times in the Retirement Market: Growing Longevity Risk, Growing Opportunities” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
Conning provides both public and proprietary research as well as consulting services to the financial services industry. The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.
For more on Conning visit www.conning.com