Harris poll for Athene: 85% of Gen X, Millennials want in-plan guaranteed income

A Harris Poll conducted on behalf of Athene and released Tuesday found that 85% of Gen X and Millennial respondents would like to see guaranteed income included as a core aspect of their plan, according to 401(k) Specialist's report on the survey. The poll drew on 2,000 adults with moderate income and assets, and the article sets the findings against familiar ground: pensions are no longer the norm, market uncertainty is more prevalent, and more access to lifetime income products, particularly inside an existing 401(k), might brighten younger workers' retirement aspirations.

What respondents say is worrying them is concrete. Eighty percent said the economic rules that served older workers have changed. Rising health care expenses, at 67%, and inflation, at 62%, emerged as primary concerns, and half said inflation is the biggest perceived barrier to savings, ahead of day-to-day expenses at 39%. Confidence in the system runs low across the board: 83% said their generation faces retirement challenges different from those of older workers, 76% said the U.S. retirement system was designed with a previous generation in mind, 63% are concerned Social Security will be depleted before they are old enough to draw benefits, and almost two-thirds are concerned they have far fewer guaranteed retirement income options than previous generations.

Sean Brennan, co-president of Athene USA, said the results suggest that more focus and education about the benefits guaranteed income products offer might help younger workers establish a dependable stream of funds through retirement, the report says.

The commercial interest sits on the surface. The poll was conducted on behalf of a retirement solutions provider, so the 85% is a demand reading taken by a firm that sells the answer it describes. That does not discredit the number, but it does define what the number is: a measure of stated preference. The coverage does not say how many respondents already own a guaranteed income product, or whether the "core aspect" they want means a line on the investment menu or a default that captures contributions without a decision. Those are different things for a plan committee to adopt, and the poll speaks only to the appetite that precedes both.

For advisors and plan committees, the population matters as much as the percentages. Moderate income and assets describe the households most exposed to the shift the poll is measuring, and it is their plan that carries the load. Whether sponsors answer with a menu line or a default, and what they charge for it, is the part of the lifetime income story this survey cannot reach. The next figure worth reading will come from plan documents rather than another sentiment poll: how many sponsors add the option, and how many participants use it once it is there.