Needham, MA, March 15, 2006 – The challenge of funding retirement programs for the aging “baby boomer” population is not limited to the United States. Within a century, the number of people over age 65 will outnumber all other age groups in developed countries, including Australia and countries in Western Europe. As this “baby boomer” generation begins to retire, the public and private retirement and healthcare systems currently in place will become less viable. According to TowerGroup, without a concerted effort from both the public and private sector, many countries will inherit substantial financial burdens from their aging population with long-term negative consequences.
New research from TowerGroup notes that financial institutions should follow the lead of the U.S. insurance industry in offering innovative, alternative investment products and services that are geared toward retirement income. This trend is currently predominant in the insurance sector, which offers income annuities, guaranteed income riders and other products to help investors gain financial stability for their retirement. According to TowerGroup, financial institutions will secure a competitive advantage if they can more effectively manufacture, distribute, and support products that satisfy the diverse and growing financial needs of retirees.
A new TowerGroup report titled, “The Future Retired: Facts, Figures, and Issues for Insurers, Retail Brokers, and Financial Advisors,” by Cynthia Saccocia, research area director of the Insurance practice at TowerGroup, highlights the risks ahead to the stability of public and private retirement income programs due to the impact of the aging global populace across developed nations. Additionally, the report discusses product and service developments that the insurance industry is undertaking to address potential shortfalls in individual retirement savings plans. Matthew Macauley, research associate at TowerGroup, also contributed to the report.
This report is available to qualified members of the press for review. To request a copy or to arrange an interview with Ms. Saccocia, please contact Jorge Lavina at +1.212.455.8041 or [email protected]
At TowerGroup, Saccocia specializes in distribution and services, but also covers a wide range of other topics in business strategy and technology investment both within and beyond the Insurance industry. Earlier this year, she published a report titled, “Courting the Retired: Predictive Analytics to Define Preferences in Products, Services, and Delivery.”
TowerGroup is the leading advisory research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world’s leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America, Europe, and the Asia-Pacific region, TowerGroup serves a global client base. Visit www.towergroup.com for more information.