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America Speaks Out And We Are Listening

 

SunAmerica recently sponsored the America Speaks Out on Retirement Income Investor Research Survey, conducted by Harris Interactive, to uncover the key financial concerns and priorities of people age 45 and over.*

 

Here's what they said:

Ensuring guaranteed income for life and protecting income from market loss are top priorities. In addition:        
 

·        97% of people surveyed rank guaranteed income for life as at least somewhat important among the top investment product benefits

·        97% say guaranteed rising income is at least somewhat important as an investment product benefit

·        96% say it’s at least somewhat important to have flexibility to adjust their income and withdrawals when spending needs change

·        96% say that it is at least somewhat important to have access to a retirement investment that can limit the size and likelihood of a loss given the events of the past five years

·        95% are at least somewhat concerned that volatile economic periods will negatively impact their income in retirement

·        88% are at least somewhat concerned that Social Security will not be around or enough to provide adequate income to live on

·        Only 14% are at least very confident that they will have sufficient income throughout retirement and 30%arenot at allconfident they will have sufficient income 

·        55% do not have a retirement income plan and 49% “don’t know” where they can get guaranteed income

·        90% are at least somewhat likely to put assets in an investment that could protect their income from market losses and guarantee income for life

·        81% of Americans surveyed said they would be at least somewhat willing to give up 1% to 1.5% of investment return potential to ensure that their retirement income is guaranteed for life and protected from market declines

NOTE: Summary findings include all responses that are at least “somewhat” important, concerned, willing or likely. If summary findings did not include the “somewhat “category responses, totals would have been lower than shown. See below for additional information including complete details for the above findings.
 

Top Ranked Retirement Investment Benefits


America Speaks Out 2012 – Q3090: Please review the list of benefits seen in some retirement income investments and rate them in terms of importance to you.*Ratings based on a 5-point response scale: Extremely important, Very important, Important, Somewhat important, Not important at all (Chart includes responses of at least “Somewhat important”). Results based on responses of at least “important” were as follows: Guaranteed income: 90%; Guaranteed rising income: 82%; Flexibility to adjust income: 86%; Growth of my assets: 86%; Income protected from market losses: 87%.

 

At SunAmerica, we're listening

Our Variable Annuities with income protection benefits offer the income solutions Americans are demanding—complete with growth potential, protection of income against market risk, income flexibility, potential for rising income and guarantees that income can last a lifetime. America has spoken...and now it's time to let Variable Annuities speak for themselves!   

 

Contact your financial advisor for more information on the survey and how to make variable annuities work for you.
 

Guarantees, including optional benefits, are backed by the claims-paying ability of the issuing insurer. Income protection features are optional and available for an additional annual fee in select SunAmerica Variable Annuities and subject to restrictions and limitations. Investors must abide by certain parameters to realize the benefits. There is no assurance that income will keep pace with rising costs. Depending on the performance of the investment, investors may never need to rely on the protection afforded by an optional protection feature. Please see a Prospectus for additional details.

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Additional Information Regarding America Speaks Out


*
The America Speaks Out on Retirement Survey was conducted online within the United States by Harris Interactive between June 21-25, 2012 among 1,199 U.S. adults aged 45 and over. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys.

 

America Speaks Out Findings Details
Confidence, importance, likelihood, and concern intervals are based on a 5 point response scale: Extremely confident/important/likely/concerned, Very confident/important/likely/concerned, confident/important/likely/concerned, Somewhat confident/important/likely/concerned, Not confident/important/likely/concerned at all.  

  

  • Q3005: How would you rate your overall health? Poor (4%); Fair (18%); Good (62%); Excellent (16%).
     
  • Q3007: In general, how happy are you? Not at all happy (1%); Not very happy (21%); Very happy (69%); Extremely happy (9%).
     
  • Q3010: Which of the following types of investments do you believe is best suited to provide guaranteed income for both your immediate and long-term income needs? CDs/Treasury bills (6%); Dividend-paying stocks (individual or mutual funds) (14%); Bonds (individual or mutual funds) (7%); Immediate annuities (2%); Fixed annuities (15%); Variable annuities (6%); Don’t know (49%)
     
  • Q3015: Changing topics…If you had assets to invest today for your retirement, how likely would you be to put those assets in investments that could protect your income from market losses and guarantee it for life? Not at all likely (10%); Somewhat likely (18%); Likely (29%); Very likely (29%); Extremely likely (15%).Note: Sum of very and extremely confident responses total 14.4% prior to rounding.
     
  • Q3030: During which of the following retirement periods do you anticipate you will need the most income? In the early years of my retirement (20%); In the middle of my retirement (18%); In the later years of my retirement (42%); Don’t know (20%).
     
  • Q3035: How confident are you that you will have sufficient income throughout your retirement?  Not at all confident (30%); Somewhat confident (33%); Confident (23%); Very confident (8%); Extremely confident (5%). 
     
  • Q3040: How concerned are you about each of the following issues?
    Having enough income to pay for healthcare costs in retirement:
      
    Not at all concerned (8%); Somewhat concerned (19%); Concerned (23%); Very concerned (25%); Extremely concerned (24%).
    The impact of future inflation eroding my purchasing power and negatively impacting my lifestyle in retirement: Not at all concerned (5%); Somewhat concerned (22%); Concerned (25%); Very concerned (25%); Extremely concerned (23%).
    Market volatility impacting my retirement assets and the income generated by those assets: Not at all concerned (8%); Somewhat concerned (20%); Concerned (29%); Very concerned (23%); Extremely concerned (20%).
    Not having enough income to maintain my lifestyle in retirement due to low interest rates: Not at all concerned (9%); Somewhat concerned (24%); Concerned (28%); Very concerned (21%); Extremely concerned (17%).
    Running out of the money I need to live on during retirement: Not at all concerned (7%); Somewhat concerned (24%); Concerned (26%); Very concerned (19%); Extremely concerned (23%).
    Social Security will not be around or will not provide adequate retirement income to live on: Not at all concerned (12%); Somewhat concerned (20%); Concerned (23%); Very concerned (20%); Extremely concerned (25%).
    Medicare will not be around or will not provide adequate health care: Not at all concerned (10%); Somewhat concerned (19%); Concerned (25%); Very concerned (22%); Extremely concerned (24%). 
     
  • Q3045: Do you have a retirement income plan, a detailed plan to provide specific income amounts during your retirement? Yes (45%) or No (55%).
     
  • Q3050: How important are each of the following in the development of your retirement income plan?
    Having enough income to maintain current spending levels at retirement:
    Not at all important (4%); Somewhat important (15%); Important (34%); Very important (24%); Extremely important (22%).
    The ability to have rising income to help offset the impact of rising costs in retirement: Not at all important (3%); Somewhat important (10%); Important (35%); Very important (31%); Extremely important (22%).
    Flexibility that allows me to adjust my income withdrawals when or if my needs change: Not at all important (4%); Somewhat important (10%); Important (36%); Very important (30%); Extremely important (20%).
    An investment solution that provides some degree of protection against market change: Not at all important (4%); Somewhat important (13%); Important (32%); Very important (30%); Extremely important (22%).
    A consistent stream of guaranteed income for life: Not at all important (3%); Somewhat important (6%); Important (30%); Very important (30%); Extremely important (31%).
    Provides me access to more money early in retirement for travel and other activities: Not at all important (17%); Somewhat important (20%); Important (33%); Very important (17%); Extremely important (13%). 
     
  • Q3055: How confident are you that your retirement income plan meets each of the following criteria?
    Sufficient to pay for any healthcare or long-term care/nursing home costs in retirement: Not at all confident (10%); Somewhat confident (16%); Confident (12%); Very confident (5%); Extremely confident (3%); N/A – I do not have any form of retirement income plan in place (55%).
    Provides the potential for rising income to help offset future inflation: Not at all confident (7%); Somewhat confident (17%); Confident (15%); Very confident (4%); Extremely confident (2%); N/A – I do not have any form of retirement income plan in place (55%).
    Able to provide an adequate income for the rest of my life: Not at all confident (5%); Somewhat confident (16%); Confident (16%); Very confident (6%); Extremely confident (2%); N/A – I do not have any form of retirement income plan in place (55%).
    Was designed to generate income that matches my expected spending habits throughout my retirement: Not at all confident (7%); Somewhat confident (14%); Confident (16%); Very confident (6%); Extremely confident (2%); N/A – I do not have any form of retirement income plan in place (55%). 
     
  • Q3090: Please review the list of benefits seen in some retirement income investments and rate them in terms of importance to you. Ratings based on a 5-point response scale: Extremely important, Very important, Important, Somewhat important, Not important at all (Chart includes responses of at least “Somewhat important”). Results of at least “important” were as follows: Guaranteed income: 90%, Guaranteed rising income: 82%, Flexibility to adjust income: 86%, Growth of my assets: 86%, Income protected from market losses: 87%.
    Guaranteed income for life:
    Not at all important (3%); Somewhat important (7%); Important (27%); Very important (28%); Extremely important (34%).
    Income protected from market losses: Not at all important (4%); Somewhat important (9%); Important (29%); Very important (29%); Extremely important (28%).
    Guaranteed rising income: Not at all important (3%); Somewhat important (15%); Important (35%); Very important (27%); Extremely important (20%).
    Income solutions that match my spending patterns: Not at all important (5%); Somewhat important (15%); Important (34%); Very important (32%); Extremely important (15%).
    Tax advantages: Not at all important (8%); Somewhat important (13%); Important (34%); Very important (25%); Extremely important (20%).
    Professional money management: Not at all important (17%); Somewhat important (22%); Important (33%); Very important (17%); Extremely important (11%).
    Beneficiary protection: Not at all important (11%); Somewhat important (15%); Important (29%); Very important (25%); Extremely important (20%).
    Growth of my assets: Not at all important (4%); Somewhat important (10%); Important (32%); Very important (31%); Extremely important (24%).
    Flexibility to adjust income to meet changing needs: Not at all important (4%); Somewhat important (10%); Important (32%); Very important (35%); Extremely important (19%). 
     
  • Q3060: Considering the current interest rates, how interested would you be in an investment that could offer the opportunity to earn more income, along with more flexibility to help you customize your retirement income plan?  Not at all interested (15%); Somewhat interested (26%); Interested (30%); Very interested (20%); Extremely interested (8%). 
     
  • Q3065: Considering the economic and financial events of the last five years, how important would it be to have access to an investment for your retirement income that seeks to limit the size and likelihood of losses?  Not at all important (4%); Somewhat important (16%); Important (32%); Very important (28%); Extremely important (20%) 
     
  • Q3070: How willing would you be to give up 1-1.5% of investment return potential per year to ensure that your retirement income is guaranteed for life and protected from market declines?  Not at all willing (19%); Somewhat willing (32%); Willing (27%); Very willing (15%); Extremely willing (7%). 
     
  • Q3075: How interested would you be in an investment that offers you participation in the upside potential of the stock market, protection of your investment for retirement income purposes, and income that is guaranteed to last for as long as you live?  Not at all interested (12%); Somewhat interested (25%); Interested (30%); Very interested (21%); Extremely interested (11%). 
     
  • Q3085: How much time have you spent to understand and forecast the amount of income that Social Security will provide throughout your retirement?  None (12%); A little (37%); A moderate amount (38%); A great deal (12%). 
     
  • Q3093: How concerned are you that volatile economic periods will erode your nest egg and negatively impact your income in retirement?  Not at all concerned (5%); Somewhat concerned (22%); Concerned (26%); Very concerned (27%); Extremely concerned (20%). 
     
  • Q3095: How would you rate Social Security in terms of its ability to deliver an appropriate amount of income benefits relative to your contributions?  Not fair at all (26%); Somewhat fair (44%); It’s a fair deal (23%); Don’t know (8%). 
     
  • Q3105: How confident are you that Social Security and Medicare will be there for you throughout your retirement?  Not at all confident (39%); Somewhat confident (35%); Confident (17%); Very confident (7%); Extremely confident (3%). 
     
  • Q3110: How interested would you be in using your retirement savings contributions to create your own stream of guaranteed retirement income similar to Social Security?  Not at all interested (25%); Somewhat interested (31%); Interested (27%); Very interested (11%); Extremely interested (6%). 
     
  • Q3115: How important is it to you to have a source of guaranteed income for life through a retirement savings vehicle, other than Social Security and/or a defined benefit/pension plan during retirement?  Not at all important (8%); Somewhat important (22%); Important (29%); Very important (24%); Extremely important (16%). 
     

Note: Reponses that don't add up to 100% are because of rounding or the ability to select multiple responses.

 

M5172WEB.1 (09/12)
 

Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Tax-qualified plans, such as an IRA, 401(k), etc., are tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity.

Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained from your financial advisor or by calling 1-800-445-7862. Please read the prospectus carefully before investing.

This material was prepared to support the marketing of the SunAmerica Variable Annuities. Please keep in mind that American General Life Insurance Company (American General Life), SunAmerica, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material.

Variable annuities are issued by American General Life Insurance Company (American General Life), except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Products are marketed by SunAmerica, The Retirement Specialist. All products may not be available in all states. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity.

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1-800-445-7862. 

  

 

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