黑料社区

How to talk about annuities to clients in their 40s and 50s

Many clients in their 40s and 50s believe annuities are only for people knocking on retirement鈥檚 door. But life between 40 and 59 is full of financial transitions and those events can offer powerful moments to reframe the conversation.

It鈥檚 also a stage of life marked by complexity. According to a survey conducted for 黑料社区 by The Harris Poll, 73 percent of Gen Xers report that caregiving responsibilities, whether for adult children, aging parents, or both, have already impacted their retirement goals.¹ Many are delaying retirement, dipping into savings, or losing sight of their long-term plans altogether.

Whether they鈥檙e adjusting to an empty nest, receiving an inheritance or navigating early retirement, your clients post-boomer may be looking for ways to plan long-term. That鈥檚 where annuities can step in. Not just as retirement income vehicles, but as flexible solutions that can help protect, grow and reallocate savings in meaningful ways.

Here are six life-stage scenarios and prompts that can help you begin the conversation. 

1. 鈥淚 just changed jobs, what should I do with my old 401(k)?鈥�

A client in their mid-40s has accepted a new role and is unsure what to do with the balance in their previous employer鈥檚 retirement plan. It鈥檚 a big decision and a critical moment to realign long-term goals.

Conversation starter:

鈥淲hat are your top priorities for those funds, growth, protection or flexibility? There are options that could support all three.鈥�

Annuity angle:

Rollover scenarios can be ideal opportunities to introduce annuities. Some deferred annuities allow clients to protect their principal while allowing it to grow tax-deferred until they take withdrawals. And, depending on the annuities鈥� contribution limits, clients who are already maxing out other retirement vehicles can keep building. 

2. 鈥淚 received an inheritance. How can I help protect my wealth?鈥�

Your client just received a lump sum after the loss of a loved one. They鈥檙e grateful, overwhelmed, and want to make the most of the money but don鈥檛 want to risk losing it to market timing or reactive decisions.

Conversation starter:

鈥淲ould you feel more confident knowing part of that money was protected and still working toward your long-term goals?鈥�

Annuity angle:

An annuity can help turn a financial windfall into stable, predictable growth. Fixed annuities can offer guaranteed interest rates, providing growth potential that鈥檚 protected from market downturns. For clients who may be hesitant to make big decisions right away, this is one way to help preserve the inheritance and stay aligned with their financial goals.

3. 鈥淲e just downsized, what should we do with the extra money each month?鈥�

Your clients recently sold their home and moved into something smaller. They鈥檙e excited about the sale proceeds and lower monthly costs and wondering what to do with the savings.

Conversation starter:

鈥淗ave you thought about redirecting some of that freed-up income toward building protected retirement savings?鈥�

Annuity angle:

With fewer immediate expenses, it鈥檚 a great time to redirect funds toward accumulation strategies with long-term benefits. Putting the difference in an annuity can provide an income stream for life, helping to ensure your clients won鈥檛 outlive their savings.  

4. 鈥淚鈥檓 thinking of retiring early or at least moving to part-time.鈥�

While most Americans report that they plan to retire at 65, 49% actually retire at 62.² Whether it鈥檚 health-related, lifestyle-driven or the result of workplace change, early or phased retirement is becoming increasingly common. But it often leaves clients asking how they may be able to help cushion the unexpected. 

Conversation starter:

鈥淲hat would it mean to build a reliable source of income before it鈥檚 time to take Social Security or while your investments recover from market dips?鈥� 

Annuity angle:

Some annuities can offer guaranteed income that can help clients delay claiming Social Security and boost their benefit amount. Especially for Gen X and millennial clients who may not have employer-provided pension plans, this kind of guaranteed income can help fill that gap. 

5. 鈥淲e want to help our grandkids with college but aren鈥檛 sure how.鈥�

A client in their early 50s just became a grandparent. They鈥檙e thrilled and starting to think about how they can help with future expenses or leave a legacy.

Conversation starter:

鈥淲hat if you could set aside money for their future that鈥檚 flexible and protected without locking it into strict education-only rules?鈥� 

Annuity angle:

While 529 plans are great, they come with restrictions. Some annuities can offer more flexibility plus protection from loss due to market downturns. It鈥檚 a way to contribute meaningfully without limiting how the funds can eventually be used, whether for college, a wedding, or a first home. Keep in mind there may a 10% penalty for withdrawals before age 59陆.

6. 鈥淚 just sold my business, now what?鈥�

Selling a business or property is a milestone moment that often comes with mixed emotions and big questions about what鈥檚 next. There鈥檚 excitement, yes, but also pressure not to squander the opportunity.

Conversation starter:

鈥淲ould it feel good to turn a portion of that lump sum into a guaranteed income stream 鈥� something that can keep growing even after the business is sold?鈥�  

Annuity angle:

Clients can use a portion of their proceeds to fund an annuity that helps provide tax-deferred growth or guaranteed income, depending on their goals. This can help their initial premium grow more quickly and preserve their lifestyle in retirement.

Life transitions as touchpoints for retirement planning 

These conversation starters may align with what your clients may be experiencing now, not someday. Use life transitions as touchpoints for retirement planning: a job change, a new grandchild, the sale of a business, or a shift in family responsibilities. Annuities can offer protection, accumulation and income in each of these phases, helping clients feel more confident about their future, no matter what life throws their way.

Insights on 黑料社区 Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.

Withdrawals and surrender of taxable amounts are subject to ordinary income tax, and except under certain circumstances, will be subject to an IRS penalty if taken prior to age 59陆.

Guarantees provided by annuities are subject to the financial strength and claims paying ability of the issuing insurance company.

Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.

Sources:

¹黑料社区 contracted Harris Poll to survey 1,024 adults aged 40-59 who provide financial support to at least one adult child (aged 18 and out of high school) living in their home without significantly contributing to household expenses, and who provide financial or caregiving support to at least one elderly relative. The survey was conducted between January 2, 2025 and January 19, 2025.

²2024 RCS Fact Sheet #2. 漏2024 EBRI/Greenwald Research Retirement Confidence Survey.