Tax breaks pique consumers interest in annuities, reports Mintel Comperemedia
Chicago (May 25, 2010) – Independent research by Mintel Comperemedia recently found that 40% of Americans would be very or somewhat interested in rolling over their 401-(k) or IRA into an annuity if the government encourages it with tax incentives.
The Middle Class Task Force and the Obama Administration has expressed an interest in encouraging the American public to consider annuities as a way of receiving monthly payments for retirement income. While the nature of the tax incentives has yet to be revealed, Americans seem intrigued by the idea.
However, if the task force wants more Americans to come on board, educating the public will be key. Only 48% of those surveyed are familiar with annuities, and a mere 14% currently own one.
“The lack of familiarity that Gen-X and Gen-Y have with annuities indicates they are a potentially attractive market segment,”says Susan Menke, VP, behavioral economist at Mintel Comperemedia. “But only if they were educated about the attractiveness of these products for retirement planning. ”
Mintel research suggests consumer education is also necessary to build trust between the public and annuity issuers. Sixty-three percent of respondents say they are very or somewhat concerned about the stability of the insurer that holds their annuities.
” everyone is concerned about the economy and how it will affect their retirement plans,” adds Susan Menke. ” companies will need to make significant efforts to reassure and educate consumers if they want to take advantage of this opportunity. ”
About Mintel Comperemedia
provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence. Follow Mintel on Twitter:
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