The conventional wisdom for the relatively low penetration of retirement products is that consumers are lackadaisical when it comes to providing for their old age. Accenture’s latest Global Retirement Services Survey shows, on the contrary, that they are fully aware of the risk of outliving their income and are ready now to invest. The problem for life insurers, it seems, lies instead with their products, their distribution and their reputation.
The study found that 82 percent of consumers are worried about their post-retirement finances, and 57 percent believe their standard of living will drop when they stop working. The overwhelming majority appreciates the problem and is prepared to address it without delay.
However, most customers find the array of retirement products and offers bewildering, and the products themselves complex. And as our research shows, insurers have generally failed to reach potential customers with product information and guidance.
Insurers must decide whether they have the capabilities and the appetite to pursue this vast opportunity. If they do, they need a clear strategy which begins with sophisticated, nuanced segmentation. Because the approach they take, and the mindset, the operating models and the infrastructure they need, will be profoundly influenced by the markets they pursue.
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Global Retirement Services Survey: Related Information