Investable retirement assets of U.S. households headed by individuals over the age of 55 will hit $22 trillion by 2020. Thats nearly double what it was in 2010, according to research from LIMRA, an industry-funded research group.
In 2010, pre-retirees defined as individuals between the age of 55 and 64 had $6.1 trillion in investable assets. Retirees had $5.9 trillion. By 2020, thats expected to swell to $10.2 trillion and $11.4 trillion, respectively, according to LIMRA.
The research estimates that almost two-thirds of the projected $22 trillion will be directed towards products that will generate income for Americans in retirement, creating a huge opportunity for the financial services industry.
With such a large demand, advisors may have to provide income product solutions more efficiently, Jafor Iqbal, associate managing director of LIMRA Retirement Research, said in a statement. We are witnessing financial services firms changing the structure and business model to accommodate more customer-centric information and process.