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The North American Securities Administrators Association (NASAA) conducted two surveys of broker dealers and investment advisers to seek to measure the impact of Reg BI on these firms.
Greenwald Research was engaged to conduct an analysis of the effectiveness of the survey processes and questionnaires to achieve that objective.
Many plan sponsors are open to these solutions; 8 in 10 say these options would improve participants’ retirement security
WASHINGTON – January 12, 2022 – A recent study conducted by Greenwald Research focused on in-plan retirement income solutions found that 85% of plan participants wish their employer’s retirement plan had an option designed to help generate a stream of income in retirement.
Greenwald’s first annual In-Plan Insights Program was conducted throughout 2021 to explore and evaluate the defined contribution (DC) plan retirement income landscape. The multi-phase program, including research with plan participants, plan sponsors, and plan advisors, covered a range of topics from SECURE Act impact to retirement income planning needs to reaction to in-plan income concepts. The 2021 Program was sponsored by American Century Investments, BlackRock, Fidelity Investments, Lincoln Financial Group, Nationwide, Pacific Life Insurance, Principal Financial Group, and Voya Financial.
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WASHINGTON – December 2, 2021 – The 17th annual “Consumer Engagement in Health Care Survey” (CEHCS), a survey of privately insured adults conducted by the Employee Benefit Research Institute and Greenwald Research, finds interest in telemedicine options doubled between 2017 and 2021. Satisfaction with telemedicine visits was high, with three-quarters stating they were satisfied or very satisfied.
WASHINGTON – November 18, 2021 – A new report based on the annual “Workplace Wellness Survey” (WWS), conducted by the Employee Benefit Research Institute and Greenwald Research finds that Black and Hispanic workers are more likely to be financially challenged by debt and less able to handle an emergency or sudden large expense than their White counterparts. Moreover, while evaluations of work-life balance improve with income, Black and Hispanic workers in households earning $75,000 per year or more are less content with the work-life balance at their organizations than their White counterparts and are less likely than White workers to give high ratings to their employers’ efforts to improve various aspects of their wellbeing.
WASHINGTON – October 7, 2021 – The 2021 Workplace Wellness Survey, conducted by the Employee Benefit Research Institute (EBRI) and independent research firm Greenwald Research, finds that 76% of employees favorably view their employers’ efforts to improve their overall well-being. Employees recognize these initiatives, as one in three employees acknowledge increased focus by their employers to improve emotional, physical, and financial wellbeing.
Washington, DC, September 23, 2021 – Greenwald Research (Greenwald), a leading independent custom research firm and consulting partner to the health and wealth industries, released new industry research from the 2021 Retiree Insights Program. The research program shares data on the COVID-19 pandemic’s impact on views towards investing, financial products, financial security, and preparation for retirement.
Washington, DC, August 12, 2021 – Greenwald Research (Greenwald), a leading independent custom research firm and consulting partner to the health and wealth industries, released new industry research, which provides a 360-degree view of how Medicare is marketed and distributed today, including brand strengths and weaknesses among both consumers and brokers, drivers of loyalty and satisfaction, and opportunities for growth.
In partnership with the American Association for Medicare Supplement Insurance, Greenwald surveyed 508 Medicare brokers, 1,023 healthcare consumers between 64 and 68 years old, and executives at 5 national field marketing organizations (FMOs) for the Medicare Marketing & Distribution Research Program. The research program also shares data on the differing approaches and motivations of Medicare brokers, areas of opportunity for Medicare products and brokerage services, and carrier selection and rankings, among other important topics.
The Medicare Market Today
Based on interviews with the FMO executives, a lack of clear succession planning for retiring brokers and advancement of technology in the industry have contributed to the consolidation of distribution and increases in the direct selling of Medicare products. With many brokers nearing retirement age themselves, there is an indication that this trend of consolidation is likely to continue.
While 46% of brokers believe that Medicare sales will eventually become completely virtual due to technological advancements, 91% of brokers believe that there will continue to be a role for them in Medicare sales and distribution. The challenge for Medicare brokers moving forward will be to determine how to evolve their roles to continue providing value to retiring consumers.
“Medicare brokers have varying needs based on the range of products they are selling, the audiences that they are focused on, and their growth trajectories,” said Edna Vasquez-Dretzka, study author and Managing Director, Healthcare at Greenwald Research. “This research provides clarity into who these brokers are and how you can tailor your support to meet their personal and professional needs.”
Medicare Broker Types
Results of the research program revealed that there are three distinct types of Medicare sellers: Medicare specialists, retirement specialists, and generalists. Their differing approaches and motivations for selling Medicare products indicate varying levels of interest in and preparedness for discussing other insurance and financial needs of retiring consumers. Each broker type also emphasized having different support needs from both carriers and FMOs.
Medicare Specialists
Medicare specialists represent 35% of brokers, or 179 of all study participants. These brokers are lifestyle brokers, with 46% reporting that they’re motivated to sell Medicare because of the flexible schedule. Medicare specialists are focused on individual Medicare sales, as 87% get more than 80% of business from individual sales. Their marketing needs include assistance setting up online presence, lead generation, and marketing support. From agency partners, Medicare specialists are specifically looking for digital tools and opportunities for continuing education and training.
Retirement Specialists
Retirement specialists represent 45% of brokers or 227 of all study participants. 48% of these brokers are motivated to sell Medicare because they were already selling other insurance products. In fact, these brokers sell the greatest number of products besides Medicare and 31% receive less than a quarter of their commission from Medicare sales. They sell 401Ks and annuities. Their marketing needs include better understanding of competition in the area, plan comparison tools, and cross-selling support. From agency partners, retirement specialists are specifically looking for flexibility in the commission structure and for them to have good carrier relationships.
Generalists
Generalists represent 20% of brokers or 102 of all study participants. Similar to retirement specialists, 43% of these generalists are motivated to sell Medicare because they were already selling other insurance products and they sell the second largest variety of products besides Medicare after retirement specialists. Of these brokers, 30% receive less than a quarter of their commission from Medicare sales. One of the largest differentiators between the two groups is that generalists do not sell any 401K or annuity products. Their greatest marketing needs include marketing support and access to better technology for virtual sales. From agency partners, generalists are specifically looking for high-level, agent servicing.
About the Medicare Marketing & Distribution Research Program
The 2021 Medicare Marketing & Distribution Research Program was conducted using online surveys and telephone interviews between March 1, 2021 and April 15, 2021. The program studied three primary audiences, including 1,023 health plan consumers aged 64-68, 508 health insurance brokers who sell group or individual Medicare, and 5 Medicare distributors. Neither the consumer nor the broker surveys were weighted.
Complete findings from the Medicare Marketing & Distribution Research Program are available for public purchase. To become a partner and gain early access to results in future studies, contact Greenwald.
About Greenwald Research
Greenwald Research is a leading independent custom research firm and consulting partner to the health and wealth industries that applies creative quantitative and qualitative methods to produce knowledge that helps companies stay competitive and navigate industry change. By leveraging deep subject matter expertise and a trusted consultative approach, Greenwald offers comprehensive services for weaving rich research stories that answer strategic business questions. Visit greenwaldresearch.com to learn more.
About American Association for Medicare Supplement Insurance
The American Association for Medicare Supplement Insurance (AAMSI) supports insurance professionals and organizes the national Medicare insurance industry conference. AAMSI also hosts the national online directory providing consumers with free access to find local Medicare insurance brokers and agents. Visit medicaresupp.org to learn more.
Lower income and assets drive differences between Black and Hispanic Americans and others. Some attitudinal differences remain present, even looking at those with comparable financial means; Pandemic Impacted Black and Hispanic Workers More than White Workers.
WASHINGTON – June 10, 2021 – A new report based on the annual Retirement Confidence Survey (RCS), conducted by the Employee Benefit Research Institute and Greenwald Research finds that Black and Hispanic Americans face more challenges preparing for retirement including having been more economically impacted by the coronavirus pandemic than White Americans. Of particular importance — Black and Hispanic Americans disproportionately report lower financial resources, and how they feel about retirement and financial security are clearly impacted by having lower income.
Confidence in Medicare, Social Security Benefits Reaches All-Time High, Workers Stay the Course with Retirement Plans
WASHINGTON – April 22, 2021 – Despite a global pandemic that created uncertainty in the employment and financial markets, the 2021 Retirement Confidence Survey (RCS) found eight-in-ten retirees are confident in their ability to live comfortably throughout retirement, similar to the 76 percent of retirees who were confident when the survey was last fielded in March 2020. Workers also remain optimistic, with 72 percent of workers expressing confidence in their ability to retire comfortably, up three percentage points from last year.
The 31st Annual RCS is the longest-running survey of its kind, measuring worker and retiree confidence about retirement. It is conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research. The RCS was fielded in January. Last year, the RCS was fielded twice – once in January prior to the COVID-19 outbreak and then re-fielded through a supplemental survey of key questions from March 20-30, 2020, allowing for comparisons before and during the pandemic.
“Even with changes in the labor market, workers’ confidence in their ability to live comfortably in retirement remains high overall,” said Craig Copeland, EBRI senior research associate and co-author of the report. “However, while resilience may be the watchword for 2021, three-in-ten workers say the pandemic has negatively impacted their ability to save for retirement, due to reduced hours, income, or job changes. The group that was most likely to have their ability to save impacted were those that were more likely to have low confidence historically, such as low income, not married, and having a problem with debt.”
Nearly two-in-ten (18 percent) workers said their hours and/or pay were reduced since February 1, 2020. One-in-ten workers said they were furloughed/temporarily laid off. In total, 39 percent of workers reported their household experienced some type of negative job or income change since February 1, 2020. However, 21 percent of workers did report having some type of positive change in work in the same timeframe.
Workers who had a negative change in work were more likely to say that the COVID-19 pandemic reduced their confidence in having enough money to live comfortably throughout their retirement years. Half of workers who had a negative change in work said that they were either somewhat or significantly less confident as a result of the COVID-19 impact, compared with just 24 percent of those who did not have a negative change.
Retiree Lifestyle and Expenses Largely Unchanged
Despite the challenges of 2020, retirees continue to report their lifestyle and expenses are as expected or better. Eight-in-ten retirees report that their overall lifestyle – including traveling, spending time with family, or volunteering – is as expected or better, including nearly three-in-ten saying their retirement lifestyle is better than they expected. Despite a challenging and unprecedented year, these results are virtually identical to those measured pre-pandemic, in January 2020. About six-in-ten retirees indicate their overall expenses and spending in retirement are as expected and just 26% say spending and expenses are higher than expected – a decrease from last year.
“About seven-in-ten retirees report that their confidence in living comfortably throughout retirement was unchanged by the pandemic; 23% feel less confident and five percent feel more confident,” said Lisa Greenwald, CEO of Greenwald Research, and co-author of the report. “Retirees’ top priorities for discretionary spending in retirement continue to be travel and spending on leisure or entertainment. Many of these activities were curtailed during the pandemic, perhaps leading to lower spending. That’s one reason why we may be seeing these results. Another is the adaptability and resilience of retirees demonstrated throughout the RCS’ history. The survey shows retirees prioritize asset preservation and do not like the idea of spending down.”
Pandemic Increases Retiree Confidence in Medicare and Social Security
“Also, Social Security – a ‘major’ source of income for more than six-in-ten retirees – continued uninterrupted during the pandemic,” added Greenwald. Confidence in Social Security continuing to provide benefits of at least equal value to those received today reached an all-time-high among both retirees (72%) and workers (53%). Three in four retirees and nearly six in ten workers are confident that Medicare will continue to offer benefits of at least equal value to those received today, an all-time high since the RCS was first fielded and remarkable in a year marked by mass health concerns, especially among older populations.
Workers Staying the Course and Satisfied with Workplace Retirement Plans
Only 22% of workers adjusted the age at which they plan to retire because of the pandemic and its economic impact, including 17% who plan to retire later. The RCS continues to demonstrate that workers expect to work in retirement, which is drastically different than the experience retirees report. Three-quarters of workers expect to work in retirement compared to just three-in-ten retirees who report doing so.
More than four-in-five workers who are offered a workplace retirement savings plan are satisfied with the benefit. Just three-in-ten report having made changes to their plan in the past year. Among those that did, six-in-ten say they increased the amount they contribute, while one-in-four each say they reduced or stopped contributions.
“Showing further resilience, just one-in-ten workers who have saved for retirement say they have taken a loan, hardship distribution or early withdrawal from their workplace retirement plan in the past 12 months,” says Copeland. “The most likely reasons for taking this money out were for paying off credit card debt, or for a COVID-related need.”
About four-in-five plan participants were satisfied with the investment options available, although three-in-ten say they would like more options available, an increase from 22% in 2020. A quarter of workers with a workplace retirement plan say adding more investment options designed for post-retirement would be valuable, and about three-quarters expressed some interest in putting a portion of their plan savings into an investment option that would provide guaranteed monthly income for life.
Diverse Communities Face Different Challenges
To better understand differences in retirement-related behaviors and attitudes among workers and retirees, this year’s RCS included oversamples of Hispanic and Black workers and retirees. The survey included 731 responses from those who identified as being of Hispanic, Spanish, or Latino origin (404 workers, 327 retirees) and 741 completed surveys from those who identified as non-Hispanic Black or African American (380 workers, 361 retirees). EBRI and Greenwald researchers will be conducting a fuller analysis of differences by race and ethnicity and will issue a separate report on those findings in June 2021.
About the Survey:
The survey report, The 2021 Retirement Confidence Survey, is available at ebri.org. The survey was underwritten by AARP, Aon, Ariel Investments, Ayco, Bank of America, BlackRock, Capital Group, Columbia Threadneedle, Empower Retirement, Fidelity Investments, FINRA Foundation, J.P. Morgan, LGIMA (Legal & General Investment Management America), Mercer, Mutual of America, Nationwide Financial, New York Life, PIMCO, Principal Financial Group, Prudential, PGIM, Retirement Clearinghouse, T. Rowe Price, Segal, U.S. Chamber of Commerce, and Wells Fargo.
The 2021 survey of 3,017 Americans was conducted online January 5 through January 25, 2021. All respondents were age 25 or older. The survey included 1,507 workers and 1,510 retirees – this year included an oversample of Black Americans and Hispanic Americans.
Data were weighted by age, sex, education, household income and race. Unweighted sample sizes are noted on charts to provide information for margin of error estimates. The margin of error would be ± 2.5 percentage points for both workers and retirees in a similarly-sized random sample.
About EBRI:
The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI conducts objective research and education to inform plan design and public policy, does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org.
About Greenwald Research:
Greenwald Research is a leading, independent research firm that has been specializing in retirement, employee benefits, and health care research for over 35 years. For more information, go to www.greenwaldresearch.com.
New Research Study Reveals America’s Outlook on Retirement Amid COVID-19
Washington, DC, February 1, 2021 – Greenwald Research (Greenwald), a leading independent custom research firm and consulting partner to the health and wealth industries, released a new syndicated research study today, sharing data on Americans’ changing perceptions of employment and retirement in the wake of the COVID-19 pandemic.
With results gathered in December 2020, the Rethinking Retirement Survey—conducted with the advanced automated platform from response:AI—surveyed Americans ages 50–69 with at least $50K in household income to understand the population’s attitudes toward key employment and retirement trends as Americans rethink their plans while coping with the crisis. Pre-retirees and retirees responded with insights on how work and the workplace have changed, adjustments around when to retire, and lifestyle and financial goals during retirement.
The Impact on Retirement Timing Due to COVID-19
When to retire is a complex issue, and COVID-19 has complicated it further. One-quarter of American workers ages 50–69 now plan to retire later than they had originally intended. The biggest motivator for those pushing back retirement is the financial impact of the pandemic. Another 9% plan to retire sooner than intended, motivated by no longer wanting to work and a change in satisfaction derived from work. Additionally, many are worried about their health and safety when it comes to working in-person.
Lisa Greenwald, CEO of Greenwald Research, says pre-retirees are certainly reviewing their options. “Americans have experienced the impact of the global pandemic for almost a year now. Pre-retirees are reassessing their priorities, and while some are now seeing a financial need to work longer, others are fed up with the drastic changes to the workplace. These changing attitudes need to be considered, and what impacts they will have on the workforce long-term.”
Change in Retirement Lifestyle and Goals
The Rethinking Retirement Survey is helping piece together a clearer picture of how Americans envision their retirement years—including how they plan to spend their time and money after working. 38% of respondents in this study say the pandemic has permanently shifted what retirement looks like for them.
Many experts agree that the global pandemic will forever change the world of work and our decisions around traveling, volunteering, and spending time with family—activities that many look forward to during retirement. Additionally, 55% of pre-retirees see no point in retiring during the pandemic since they can’t do the things they hope for in retirement.
“COVID-19 has shifted the importance of retirement goals, with increased prioritization of time with family and friends, entertainment, leisure, and hobbies,” said Sharon Scanlon, head of customer experience, Retirement Plan Services, Lincoln Financial Group. “Taking time to set those retirement goals is critical, as is leveraging the help of a financial professional or available tools to help savers understand if they are on track to hit those goals.”
Preparing for Retirement
Just a quarter of pre-retirees believe they have saved enough for retirement, and over half are hesitant to retire because they are unsure how much money they will need in retirement. Additionally, many have not taken additional steps beyond saving to prepare for retirement. For instance, four in ten have not discussed when they plan to retire with anyone—including financial professionals or family members.
Pre-retirees have a drastically different view of transitioning into retirement than the experiences of retirees. “Pre-retirees are overestimating the likelihood of retiring gradually,” said Ali Ahmed, Director of Thought Leadership at Fidelity Investments. “They also have many worries not shared by retirees. These workers believe that managing finances will be difficult when they are retired, and that remaining in the workforce is the best way to stay happy. These views may be obstacles to taking the necessary steps to prepare for their future retirement lifestyle in a range of aspects.”
The research also reveals that 36% of pre-retirees say the pandemic has made caregiving a higher priority in retirement. “Caregiving is a growing issue for pre-retirees, who now believe they are now more likely to take on caregiving responsibilities due to the pandemic.” said Lisa Weber-Raley, Greenwald’s Chief Research Officer who leads caregiving research for the firm. “Even more interesting, pre-retirees see caregiving as both a reason to stay in the workforce longer and a reason to retire sooner.”
About the Rethinking Retirement Study
The survey of 1,019 individuals was conducted online between December 4 and 7, 2020. All respondents were between the ages of 50 and 69 and had at least $50,000 in household income. The national sample is weighted by gender and age to reflect the actual proportions in the population.
Complete findings from Rethinking Retirement are available for public purchase along with Greenwald’s recently released Millennial Attitudes Towards Life Insurance and Financial Security Study. To become a partner and gain early access to results in future studies, contact Greenwald.
About Greenwald Research
Greenwald Research is a leading independent custom research firm and consulting partner to the health and wealth industries that applies creative and quantitative and qualitative methods to produce knowledge that helps companies stay competitive and navigate industry change. By leveraging deep subject matter expertise and a trusted consultative approach, Greenwald offers comprehensive services for weaving rich research stories that answer strategic business questions. Visit greenwaldresearch.com to learn more.
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Mike Mills
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267-454-2947
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