401(k) Specialist Issue 3 - 2024 - 4

401(k) NEWS YOU CAN USE
Investors and Financial Planners Disconnected
on Retirement Income, Social Security
initiated conversations about annuity products, just 27% of investors
agree. Similarly, when discussing retirement income planning, 98%
of planners say they have talked about Social Security, pensions, and
annuities, but only 69% of clients agree.
Meanwhile, even though 96% of advisors say they have discussed
when clients should withdraw from certain accounts, only 66% of clients
believe they have; and while 95% of planners have recalled conversations
with clients about minimizing taxes, only 64% of clients concur.
" There's a clear and concerning gap between what investors need
AN ALLIANCE FOR LIFETIME INCOME STUDY reveals key disconnects
between financial planning professionals and investors when
approaching protected income and annuities in retirement.
The findings from the firm's 2024 Protected Retirement Income and
Planning (PRIP) study shows that while 62% of advisors say they've
and want versus what many financial professionals are communicating
when it comes to planning for retirement, " said Jean Statler, CEO
of the Alliance for Lifetime Income. " The findings in Chapter 3 of our
annual survey with consumers and advisors should serve as a wakeup
call. There's growing consumer interest and demand for protection,
but we need to bridge this communication divide to ensure that
all those approaching retirement, feel prepared and protected for the
years ahead. "
Americans List Social Security,
Medicare as Priorities for Congress
AMERICANS ARE URGING CONGRESS and the president to address
Social Security's funding shortfalls, despite a lack of clear strategy from
general election candidates.
A report from the Transamerica Center for Retirement Studies found
that 62% of 10,000 respondents surveyed listed addressing Social
Security's funding shortfalls as their retirement security priority for
policymakers.
This was especially true for retirees, as 82% said they hope policymakers
will tackle the insolvency. Middle-class workers were also likely
to urge Congress in prioritizing Social Security, with 66% of those earning
between $100,000 to $199,000 and 64% of workers making $50,000
to $99,000 wanting to hear from policymakers.
Other priorities listed in the Transamerica research include addressing
Medicare's funding shortfalls (51%), making out-of-pocket health
care expenses and prescription drugs more affordable (49%), ensuring
all workers can save for retirement in the workplace (44%), increasing
access to affordable housing (40%), innovating more affordable
solutions for long-term care (38%), implementing financial literacy curriculum
in schools (38%), supporting family caregivers (36%), providing
and/or subsidizing additional broadband access (28%), and creating
incentives for continuing education (26%).
4
ISSUE 3 2024 | 401kSpecialist.com
Americans have been calling on Congress and general election
candidates to address Social Security's funding gaps in the latest
months, as threats of a looming insolvency in 2033 concern workers
and near-retirees. Research from the National Institute on Retirement
Security (NIRS) in July found that 87% of 1,208 individuals surveyed
urged Congress to prioritize funding Social Security benefits now.
Furthermore, nearly all respondents surveyed (90%) by NIRS said it is
" important for the upcoming administration and Congress to solve the
Social Security financial shortfall. "
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401(k) Specialist Issue 3 - 2024

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