Purchases of variable annuities hit a three-year high last quarter, according to new sales figures released by the Secure Retirement Institute.
Why it matters, per Axios Business Managing Editor Jennifer Kingson: Variable annuities, meant to generate income in retirement, fluctuate depending on the performance of various markets. The fact that consumers are buying them is another indicator of economic confidence.
Go deeper:
Americans' sentiments about retirement illustrate the impact of growing socio-economic inequality in the country.
The bottom line: Inequality is cyclical. Poorer, less educated, marginalized Americans face more hurdles to reaching a comfortable retirement. Meanwhile, wealthier Americans are more likely to have the luxury of retiring or working as long as they want.
The number of Americans in the workforce who are over 64 years old has tripled over the past 30 years.
Why it matters: Delayed retirement is a sign of health and affluence for some and a continued life of hardship for others. As society ages and people live longer, a 21st century idea of retirement is needed, Steve Vernon of the Stanford Center on Longevity tells Axios.
Illustration: Eniola Odetunde/Axios
In an age where “ok boomer” is a rallying cry for young people fed up with older people who don’t understand them, stereotypes abound of millennials spending money poorly.
The big picture: Labor economist Teresa Ghilarducci tells Axios that millennials don't behave differently than prior generations — they're just thrust into different circumstances. They’re less likely to be offered pensions or qualify for employer-sponsored retirement plans, so they start saving later in life and accumulate less compared to their predecessors. Two-thirds of millennials have no retirement savings at all.