TORONTO, Sept. 25, 2015 /CNW/ -- A recent survey conducted jointly by CANNEX, an independent provider of data and information to the financial service industries in Canada and the United States, and Greenwald & Associates, a leading financial services market research firm, finds that consumers' number one concern in retirement is having "enough money to live comfortably throughout retirement."
The 2015 Canadian study, which was sponsored by Sun Life Financial and Great-West Life / Canada Life / London Life shows that a high proportion of the 1015 respondents, aged 55 to 75 with at least $100,000 in investable assets, feel that GLI products* provide "peace of mind and make it easier to budget and plan monthly expenditures."
However, the bulk of respondents also admitted to being unfamiliar with the product options available or to having discussed them with an advisor.
"This gap in interest and awareness represents a significant opportunity for both Canadian financial institutions and advisors as consumers move into retirement," said Doug Kincaid, Senior Research Associate at Greenwald & Associates. "GLI products significantly improve the retirement income planning process by reducing the longevity risk component but consumers don't seem to be aware of this benefit."
CANNEX and Greenwald & Associates conducted a U.S. version of the survey in 2014 and found similar results overall.
(* GLI Products referenced in the study include income annuities and segregated investment funds with GMWB / guaranteed minimum withdrawal benefits)
Other study highlights:
6 in 10 respondents find it "highly valuable" to have GLI benefits in addition to CPP/ QPP, OAS, GIS
1 in 3 retired respondents draw income only from guaranteed sources
1 in 3 retired respondents would choose an income annuity at today's values in lieu of a lump sum
6 in 10 pre-retirees expect to work in retirement while 1 in 4 retirees actually do
CANNEX Financial Exchanges Limited compiles data and calculation values about a variety of financial products and makes that information available to financial service providers and media throughout North America. CANNEX also provides transaction processing and admin services as well as point of sale calculators, analytical tools and scenario generators. The QWeMA Group, a division of CANNEX, provides consulting and independent product allocation services. For more information visit: www.cannex.com
About Greenwald & Associates:
Greenwald & Associates is a market research firm that has focused on research on retirement. The firm has partnered with the Employee Benefit Research Institute since 1991 to conduct annual Retirement Confidence Surveys of Americans and has conducted the Risk and Process of Retirement Survey for the Society of Actuaries biennially since 2001. Founded in 1985, Greenwald & Associates has conducted research for well over 100 of the nation's largest financial services companies. For more information visit: www.greenwaldresearch.com
Contact: Kathleen Gilroy