Rethinking retirement: Confidence, income, and the clock

IN Partnership with

Financial professionals can help Gen X and millennials through income planning, annuity strategies, and the shifting realities of modern retirement

GEN X AND MILLENNIALS are preparing for retirement under conditions that look very different from the past. Defined benefit pensions have largely disappeared. Life expectancies are rising. And nearly half of non-retirees believe Social Security won’t be there for them by the time they retire. These shifts are forcing younger generations to rethink what financial security looks like – and placing a heavier burden on individuals to create and manage their own retirement income. While many are building wealth, they’re not always building confidence.

Athene is the leading retirement services company, with over $360 billion of total assets as of December 31, 2024, and operations in the United States, Bermuda, Canada, and Japan. Athene focuses on providing financial security to individuals by offering an attractive suite of retirement income and savings products, and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.

“It’s easy to opt for a smaller reward now instead of a bigger one later. And when you’re dealing with something as abstract and far-off as retirement, that bias can really undermine long-term success”

Rod Mims, Athene

“For Gen X and millennials, there’s a clear desire to plan well – but it’s easy to question whether you’re on the right track when you're juggling so many competing priorities,” says Rod Mims, executive vice president and head of retail sales at Athene. “That’s where financial professionals can step in with structure, context, and products designed to reduce long-term uncertainty.” Mims, who joined Athene in 2011 and now oversees the firm’s retail annuity business, sees this moment as a key opportunity for financial professionals. “The planning window is wide open – but it won’t be forever. That’s why we’re focused on giving financial professionals the tools they need to help their clients make the most of it.”

Gen X and millennials are juggling financial pressures that often pull in opposite directions. Many are part of the “sandwich generation” – caring for aging parents while supporting adult children – which can make it hard to juggle day-to-day expenses. These competing demands can drain disposable income and delay long-term planning. “Saving becomes a lot harder when you’re managing immediate financial needs,” says Mims. “Housing costs in the US, for example, have risen nearly 40 percent over the past 10 years. That puts a real squeeze on families, especially those trying to prioritize retirement on top of everything else.” The issue can be compounded by a psychological tendency toward present bias: the preference for short-term gratification over long-term planning. “It’s easy to opt for a smaller reward now instead of a bigger one later,” Mims says. “And when you’re dealing with something as abstract and far-off as retirement, that bias can really undermine long-term success.”

Present bias isn't the only challenge facing Gen X and millennials. Although millennials now hold over $15 trillion in wealth – a nearly fourfold increase from 2019 – and Gen Xers are entering their peak accumulation years, many still feel uncertain about whether they're truly on track to retire comfortably. This uncertainty points to a significant disconnect between wealth accumulation and the confidence to retire when and how they want to. Research confirms this disconnect. Roughly 48 percent of Gen Xers express concern about outliving their money, while 49 percent said they worry retirement may not even be an option. “There’s a gap between activity and confidence,” Mims notes. “And it’s one that financial professionals are uniquely positioned to close.”

Yet, despite these widespread concerns, only a fraction of Gen Xers (27 percent) and millennials (31 percent) currently work with a financial professional, according to a 2024 retirement survey. Further complicating matters, research from intelliflo shows that more than a third of Americans (35 percent) avoid seeking professional financial advice because they mistakenly believe they don't have enough money to hire an advisor. Addressing this misconception can be critical for financial professionals aiming to personalize their approach for these younger generations. Mims emphasizes this opportunity. With the imminent wave of wealth transfers from boomers to their children and grandchildren, some younger individuals stand to inherit substantial assets. “Financial professionals who proactively build relationships across generations can help manage that transfer – and guide younger clients in using those assets strategically,” he says. Ultimately, closing this confidence gap requires personalized support. “Those numbers tell us that personalization matters,” says Mims. “This is not just about access to accounts – it’s about clarity. People want to know they’re doing the right things for their specific goals and risks.”

“We see the need to make annuities easier for financial professionals and more accessible to their clients. That’s why we’ve piloted several technology solutions – modernizing processes that ultimately change the industry for the better”

That’s where annuities can play a more prominent – and often underappreciated – role. “For Gen X and millennials, annuities can help bridge the confidence gap, turning uncertainty into clarity, security, and financial peace of mind,” Mims says. “There are longer-term annuity products – like indexed annuities, for example – with the potential to accumulate money for retirement and turn it into future income. Some products offer the option to renew, so if clients want to continue that level of protection and stability, they can.” In an environment where market volatility, inflation, and longer time horizons are the norm, annuities offer a unique value proposition: a way to help reduce downside risk while providing income that clients can’t outlive.

“Indexed annuities have the potential to earn interest based on an associated market index,” Mims explains. “At the same time, they’re protected from loss due to market downturns because they aren’t directly invested in the markets.” For clients who are 15 to 20 years from retirement, these products can serve as a stabilizing force – introducing discipline and durability to a plan that might otherwise be heavily reliant on equities or cash.

Priorities, pressures, and a shrinking margin for error

A gap between assets and confidence

Published May 21, 2025

WOMEN ADVISORS

DIVERSITY

RETIREMENT

FINTECH

TOPICS

NEWS

WOMEN ADVISORS

DIVERSITY

RETIREMENT

FINTECH

TOPICS

NEWS

WOMEN ADVISORS

DIVERSITY

RETIREMENT

FINTECH

TOPICS

NEWS

Gen X and millennial pressures

Saving is tough: High living costs are squeezing retirement contributions.

Confidence is low: Many fear they won’t have enough to retire securely.

Traditional safety nets are fading: Fewer pensions mean more personal responsibility.

Inheritance is a wildcard: Future wealth transfers could change the equation if managed well.

Rethinking the role of annuities

Annuities in focus

Not just for retirees: Long-term annuities can build protected savings before retirement.

Market-shock protection: Indexed annuities offer growth potential with downside protection.

Lifetime income matters: Annuities can hedge longevity risk with guaranteed income streams.

Finpro support is developing: Firms like Athene offer tools to simplify annuity conversations.

Repositioning income planning in client conversations

One of the key opportunities for financial professionals today is not simply discussing annuities but repositioning the role of income planning altogether. Many clients are still operating under long-held assumptions about where retirement income will come from or how long it needs to last. Few may be fully prepared for the possibility of spending 25 to 30 years in retirement – potentially more time than they spent working. That’s why post-boomer clients often go beyond accumulation. They center on sequence-of-returns risk, longevity risk, and the very practical concern of turning savings into sustainable income. Annuities aren’t the only solution, but for many clients they’re one of the only tools designed specifically to help address those concerns.

Athene supports financial professionals with more than just products. The company offers a growing library of resources, planning tools, and one-on-one support designed to make annuity conversations easier – for both financial professionals and clients. “We aim to simplify annuity conversations and help financial professionals clearly communicate their value,” says Mims. That support is particularly valuable in a market where client expectations are changing fast – and where many clients have never considered annuities at all. Through partnerships with the Insured Retirement Institute and other carriers, Athene has implemented and is piloting technology platforms that modernize the annuity experience. “We see the need to make annuities easier for financial professionals and more accessible to their clients,” says Mims. “That’s why we’ve piloted several technology solutions – modernizing processes that ultimately change the industry for the better.”

The Athene model: Tools, education, and partnership

Rod Mims, Athene

As the wealth held by Gen X and millennials continues to grow, so does the urgency of making decisions that can shape retirement outcomes. For financial professionals, this decade presents a rare chance to help clients take control before their options narrow. The financial realities facing Gen X and millennials won’t be solved with a single solution, but annuities can offer a valuable foundation. As financial professionals work to support clients through uncertain conditions, the ability to reduce complexity, provide clarity, and help restore confidence is increasingly part of the job, says Mims. “The financial professionals who succeed in this environment will be those who not only understand risk and return but also know how to translate those concepts into steady, sustainable strategies.” Click here to learn more about Gen Xers’ and millennials’ retirement planning strategies.

A practical response to a complex retirement

Disclosures: For financial professional use only. Not to be used with the offer or sale of annuities. Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks; neither an index nor any market-indexed annuity is comparable to a direct investment in the equity markets. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, New York, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR ANY BANK AFFILIATE • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

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