One such younger generation is the Generation X age bracket, which are individuals characterized as those born between 1965 and 1980. In the next 15 to 20 years when the oldest of Gen X begins to retire, where will their retirement income come from? Gen Xers are acutely aware that Boomers will be well into their retirement years resulting in fewer workers paying into Social Security – potentially negatively impacting them directly. With hard facts facing them, Gen Xers are pondering the question, “How will I fund my golden years?” Many in this demographic may now realize that their retirement income strategy requires a new approach and new tools.
This is where a knowledgeable financial professional can step in and reach out to those in these age brackets. One possible solution is fixed annuities. This retirement income solution is no longer labeled as only an “older person” retirement. Rather, it appears to be more of a benefit for Gen X than those individuals reaching retirement now.
There are several reasons why fixed annuities may be valuable, and therefore attractive product options, to the Gen X audience, including:
- Annuities provide a combination of principal protection
- Locked in interest credits
- Tax deferred interest as long as no withdrawals are taken out during the surrender charge period.
For the person in their thirties, if they start up a fixed annuity today, it is the opportunity to build an attractive retirement income over several decades.
Informative insurance sales presentations are the best way to raise awareness about the benefits associated with annuities for Gen X clients. Make sure to relate to this audience by utilizing a variety of avenues as a way to inform, connect, and ultimately make the sale.
Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.