Retirees and pre-retirees would rather let someone else be in charge of managing their assets if it means that they'd get what's more important to them: growth in their investments, flexibility in how income is paid out and an income that's guaranteed for life.
So says the results of a new LIMRA Secure Retirement Institute study, which found that the majority of retirees and pre-retirees valued being in the driver's seat less than they valued features that can drive their income.
Asked which products or features they wanted in a retirement plan, 60 percent said they wanted an income that offered the potential for growth of investments.
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They also wanted to be able to change the amount of income, with 55 percent saying that was an important feature.
Just over half said that guaranteed lifetime income was the most important to them. That last feature ranked so highly with participants that, when asked to assign points to their top five most desired features, an income they couldn't outlive polled highest.
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Participants were asked to provide reasons for their choices, and those responses were enlightening in themselves.
The majority wanted a growth option because they expect to live a long time after retirement. Thinking ahead to the possibilities of increased expenses and needing money for emergencies were the top two reasons given for wanting flexibility in the amount of income. And among those choosing guaranteed income, peace of mind was the determining factor.
Less than half of the participants considered the management or allocation of their assets as a top feature.
Instead, according to LIMRA, the feeling among retirees and pre-retirees since the financial crash is that they place a greater emphasis on making sure money will last for life, rather than controlling how their investments are managed.
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