Your clients are living longer: Three Key takeaways for Financial Professionals

As Americans live longer and household dynamics evolve, the financial risks associated with longevity are becoming more pronounced. From unexpected health events to income disruptions, today’s clients face a complex retirement landscape — and many aren’t adequately prepared.

A recent study by the MIT AgeLab, in collaboration with MassMutual Strategic Distributors, sheds light on how U.S. adults perceive annuities and longevity planning. The findings reveal both challenges and opportunities for financial professionals seeking to guide clients toward more secure futures¹.

The longevity risk landscape

Life expectancy in the U.S. has climbed from 47 years in 1900 to over 78 years today². While this extended lifespan is a gift, it also introduces the risk of outliving one’s financial resources. Add to that the rise of single-person and dual-earner households, and the potential for income disruption due to illness, disability, or death becomes even more significant. Yet many Americans underestimate their lifespan or avoid planning for future incapacity — leaving them vulnerable.

Annuities: Understood by few, owned by fewer

The study surveyed 1,000 employed adults aged 25–67 and found:

Only 11% currently own an annuity.

Just 21.1% expect annuities to be part of their retirement income.

A majority — 61.5% — don’t anticipate using annuities at all.

Familiarity is also low: nearly half of respondents were “not at all” or only “slightly” familiar with annuities. However, ownership seems to foster awareness — 92.7% of annuity owners knew others who owned one, compared to just 33.9% of non-owners.

Who’s familiar — and who’s buying?

Familiarity was higher among:

• Men
• Adults aged 55+Financial professional clients
• Caregivers
• Those with recent health changes

Ownership, however, was most common among:

• Adults aged 55+ (22.4%)
• Financial professional clients (19.3%)
• Parents (12.5%)
• Those anticipating future health events (13.0%)

These insights suggest that life stage and professional guidance are key drivers of annuity adoption. There’s also a big opportunity to drive awareness and interest in annuities from Women. Find out more about Annuities and Women.

The role of financial professionals

The study highlights a critical gap in how people learn about annuities:

• Among non-owners, top sources were family, friends, and internet searches
• Among owners, 60.9% cited financial advisors as their primary source

This underscores the importance of professional advice in shaping perceptions and driving adoption.

Attitudes toward annuities

Overall sentiment was positive:

Over half of respondents viewed annuities favorably.

Only 10.8% held negative views.

Among owners, 90%+ expressed satisfaction and rated annuities highly for importance, investment value, and interest in learning more.

Yet, even owners remained concerned about retirement savings — suggesting annuities offer peace of mind but aren’t a cure-all.

Life events spark interest

Key life transitions — caregiving, health changes, having children, marital shifts — were linked to increased interest in annuities. Younger adults (25–44) showed more curiosity, while older adults and high-income earners were less engaged.

What this means for Advisors

Three key takeaways for financial professionals:

1. Education is essential

Many clients are unfamiliar with annuities but open to learning. Advisors are the most trusted source of information among owners.

2. Life events create opportunities

Moments of transition — caregiving, health changes, parenthood — are ideal times to initiate conversations about annuities and broader financial planning.

3. Engage current owners

Even clients who already own annuities may not fully understand their benefits. Revisiting product choices can reinforce trust and uncover new planning opportunities.

By proactively addressing longevity risk and guiding clients through key life transitions, financial professionals have a unique opportunity to deliver lasting value—helping clients secure their futures and navigate retirement with greater confidence.

Explore more

Dive deeper into MIT Research

Related resources

Annuities Overview
Longevity Planning Strategies (PDF)
Client Conversation Starters
Women Investors