In the US, retirement is no longer a destination; it is a dilemma. Surveys show that fewer than 20% of adults report a retirement strategy, and only 36% hold any retirement savings.
A steady move from defined benefit to defined contribution plans across the business world has had consequences. This trend continues to transfer risk from institutions to individuals, many of whom are ill-equipped to navigate volatile markets.
Yet amid this quiet emergency, Brittainy Rivers, COO and Vice President, Client Delivery at , shares reasons for optimism in a new research paper written for , an exclusive program of the International Insurance Society (IIS). She recently sat down with 69色情片鈥檚 Tonya Blackmore, Senior Vice President, Business Engagement and Global Digital Underwriting, to share some of her conclusions. One key finding: The insurance industry can lead a revolution in building lifetime income if companies are willing to trade opacity for advocacy.
Brittainy Rivers: It鈥檚 vast and growing. Estimates place the retirement savings gap between $6.8 trillion and $14 trillion for Americans between the ages of 25 and around 64. Only 36% of US adults report having any retirement savings at all. Social Security, once a cornerstone of retirement planning, is projected to reach insolvency by 2034.
The pressure to self-fund retirement is intensifying, yet lifetime income, for many, remains persistently out of reach.
BR: Lifetime income refers to a consistent stream of income throughout retirement. That is, enough income to maintain one鈥檚 standard of living and cover essential expenses. For many who rely on a mix of Social Security, annuities, savings, and rental income or property appreciation from real estate, the challenge is not just in accumulation but also in decumulation (when retirees convert assets into income). With longer lifespans, the risk of outliving one鈥檚 savings is very real.
BR: Income plays a role, but it鈥檚 also about perception, access, and education. Many people underestimate how much they鈥檒l need. While the average retirement target is $1.46 million, most households fall dramatically short of that. Many also are sandwiched between supporting college-aged children and aging parents, so the ability to consistently save comes with its own obstacles. When you combine that with a large portion of the population that does not have access to employer-sponsored plans or financial professionals, the gap only widens. Inflation, market volatility, and a lack of financial literacy compound the issue.
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BR: Several factors converge here. First, the shift from defined benefit to defined contribution plans has placed the burden of saving and investing on individuals. Many workers lack the financial literacy to manage that responsibility. Second, market volatility, for example the 2008 downturn, has left psychological scars. And third, income inequality skews the data: The top 10% of US households holds over 67% of the nation鈥檚 wealth, while low- and middle-income earners struggle to save at all. Saving for retirement while you are trying to pay day-to-day expenses feels like a luxury for many, when in reality it is an absolute necessity for anyone hoping to live a long and fulfilling life.
BR: Because access doesn鈥檛 equal understanding. Despite the proliferation of financial content, 57% of Americans with workplace retirement accounts don鈥檛 know what they鈥檙e invested in.
Traditional education methods often fail to engage or resonate for many. What is needed is not more information, but better delivery.
BR: The research shows a shift toward personalized, dynamic learning: short-form content on TikTok, Instagram, and YouTube, AI-powered apps that personalize guidance, and gamified learning experiences.
Influencers use short, relatable content to demystify complex topics and build trust. Meanwhile, AI-powered apps personalize investment guidance and simulate financial scenarios, making learning interactive and accessible. These methods and platforms work because they meet people where they are. One drawback to social media influencers, though, is that they often lack the qualifications and accountability of certified financial advisors.
BR: Insurers must embrace their roles as educators and advocates. That means partnering with influencers to leverage the education and training insurers can provide, enabling influencers to gain accurate product knowledge and insight, training employees to serve as financial literacy ambassadors, and using AI to deliver personalized learning. Don鈥檛 get me wrong: There is still a need for traditional education.
From agents and advisors to financial literacy community programs, insurers should invest in innovative and interactive programing for individuals that incentivizes attendance and follow-up purchasing activities.
Fidelity鈥檚 FinEd Champion Program is a great example of empowering employees to bring financial education into schools and communities. Insurers can also simplify product offerings and make annuities more accessible.
BR: Policy is critical. Automatic IRA enrollment and pooled employer plans (PEPs) are expanding access, but innovation must continue to address the need for cost-effective and advantageous solutions for gig workers and those without employer-sponsored plans. Flexible contribution models, tax incentives for deferred annuities, and better integration of retirement products into everyday financial tools could help close the gap.
The SECURE Act has expanded opportunities for annuities in 401(k) plans, but cost, portability, and complexity barriers remain. Insurtech and middleware platforms are helping to address these barriers through digital comparison and management tools.
My own organization, TAI, exists to make reinsurance administration faster, easier, and more efficient. By streamlining the operational backbone of life and annuity products, TAI helps insurers scale these innovative lifetime income solutions. It鈥檚 all about enabling our clients to empower their current and future customers to achieve financial security in retirement.
BR: Yes. Insurers, reinsurers, fund managers, and recordkeepers are working collaboratively to design solutions that increase access and desirability. Addressing the various barriers to entry that individuals face is key to driving adoption. We鈥檙e seeing increased design of fee-based and non-commission annuities that address the cost barriers to entry many individuals face. Target date funds (TDFs) with embedded annuities also offer professionally managed solutions that distribute regular income while gradually drawing down assets.
69色情片 is proud to sponsor , which supports the company鈥檚 long-term commitment to fostering innovation and cultivating talent across the industry. For more than a decade, the 69色情片 Leaders of Tomorrow initiative has empowered rising stars worldwide as part of a unique mentorship program that culminates in the publication of original papers submitted by participants. In each class, a subset of candidates is selected for the 69色情片 Leaders of Tomorrow Awards and recognized at the .
Contact us to learn more and discuss how we can partner to support your growth initiatives and, together, make financial protection more accessible to all.
