Background:

The Allianz Center for the Future of Retirement®, part of Allianz Life Insurance Company of North America, has published its 2026 State of Lifetime Income Report. This second edition, based on an annual survey of defined contribution (DC) plan participants, uncovers a growing wave of concern among Baby Boomers as they grapple with the escalating risks and uncertainties of retirement. 

Findings:

Retiring in a period of economic uncertainty adds a heavy layer of anxiety to an already complex transition. In addition to the challenge of generating a steady income to cover daily expenses, retirees may worry about the impact of a significant market downturn or the potential disruption caused by unexpected major expenses.

Older workers, especially those at or near retirement age, are experiencing heightened pressure. Baby Boomers saw an approximate 10 percentage point increase for each of the following statements, compared to 2024.  

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While previous surveys showed the highest interest in in-plan lifetime income solutions, such as annuities, among Gen Z and Millennial workers, Baby Boomers are catching up. In 2025, nearly 7 in 10 Baby Boomers (69%) expressed interest in adding an annuity to their employer-sponsored retirement plan, up from 64% in 2024.

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It is worth noting that this survey focuses exclusively on individuals actively contributing to their employer-sponsored retirement plans. Baby Boomers, born between 1946 and 1964, are now aged 62 to 80 as of 2026. As a result, a significant portion of this generation has likely already retired and is not represented in the survey.  

Those Baby Boomers who remain in the workforce may be doing so out of financial necessity rather than choice, which could make them more acutely aware of retirement risks. Additionally, younger Baby Boomers are less likely than their older counterparts to have had access to traditional pension plans, potentially heightening their sensitivity to financial uncertainties and increasing their interest in tools like in-plan annuities.

BottomLine:

The growing interest in in-plan annuities among Baby Boomers reflects a broader shift in retirement planning tools. As younger generations show even stronger interest in these solutions, it’s clear that the focus is moving toward strategies that provide sustainable and predictable income for future retirees.

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Insights shared by guest contributors are their own and do not represent the views of DCIIA or the RRC.The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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¹The State of Lifetime Income Participant Survey, conducted by the Allianz Center for the Future of Retirement^® inNovember-December 2025 with a nationally representative sample of 2,729respondents aged 18+ who are currently contributing to an employer-sponsored retirement plan.

The Allianz Center for theFuture of Retirement^® produces insights and research as part ofAllianz Life Insurance Company of North America (Allianz).

Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  For institutional use only, not for use with the public.

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