Six in 10 Americans approaching retirement don’t work with a financial advisor, even as concerns about inflation and outliving their savings mount, according to new Limra research.
That advice gap appears to have a striking relationship with retirement confidence. Among pre-retirees who work with a financial advisor or planner, 77% say they feel highly prepared for retirement. Just 47% of those without an advisor say the same.
The findings from Limra’s 2026 Retirement Income Readiness Report reveal a potentially large opportunity for advisors.
While 88% of pre-retirees have thought about how they will generate income in retirement, half lack a meaningful or recently updated written retirement plan. And 76% either have no plan or spent fewer than five hours planning during the past year. Yet three-quarters want to know more about generating protected income that can last the rest of their lives.
“Consumers are telling us exactly where the industry can help,” said Bryan Hodgens, senior vice president and head of Limra research. “They value guaranteed lifetime income, they’re worried about outliving their money, and three-quarters of them are raising their hands to learn more.”
Limra describes the disconnect as an “intention-to-action gap”: Americans know retirement is coming and are thinking about income, but many aren’t taking concrete steps to prepare for it.
The gap is particularly significant because retirement preparedness isn’t determined by accumulated wealth alone. Written planning, professional advice and access to protected lifetime income are also associated with substantially higher levels of confidence, Limra’s research suggests.
Having a written plan makes a significant difference.
Only 40% of consumers without one reported high retirement confidence, compared with 71% of those who had a written plan, even if they spent fewer than five hours working on it. Among those spending five hours or more on a written plan, confidence ranged from 71% to 79%, according to Limra.
The confidence gap extends into retirement. Among retirees who work with an advisor, 81% reported high retirement confidence, compared with 54% of retirees without one.
Yet even consumers who consider themselves prepared remain worried about what their money will buy.
Cost-of-living volatility was the most frequently cited retirement concern, named by 43% of pre-retirees. Another 30% cited the risk of outliving their savings.
Those worries are colliding with another problem: Many Americans nearing retirement don’t expect their guaranteed income to cover their basic expenses.
Just 25% of pre-retirees believe protected income sources such as Social Security, pensions and annuities will fully cover essential living expenses in retirement. Among current retirees, that figure is more than twice as high. Fifty-two percent say their basic expenses are fully covered by protected lifetime income today.
Pre-retirees appear interested in changing that equation.
Nearly three-quarters, or 74%, say they want to learn more about protected lifetime income options. And 78% of consumers with a pension or annuity report high retirement preparedness, compared with 50% of those without either.
Consumers who actively educate themselves about retirement income also report higher levels of preparedness. Among pre-retirees reporting high retirement preparedness, 93% had taken action to learn about protected income. That compares with 67% of those reporting low preparedness.
“What we need to continue to do is evolve on the education front and … help [participants] know what their options are,” said Bill Nash, Limra vice president and head of member relations. “We have to get back to treating protected income as core, not necessarily niche.”
For advisors, however, turning that interest into action may require addressing some longstanding objections to annuities and other protected income strategies.
Cost is the biggest barrier. Thirty-five percent of pre-retirees cited fees or costs as a reason for not considering protected lifetime income products. Another 27% said they were reluctant to give up control of their savings, while 26% worried about locking up their money.
Limra sees those objections as an opportunity for the financial services industry to improve education, advice and product design.
“The companies that meet that demand with clear education, accessible advice and products that address cost and control concerns will define the next decade of retirement security,” Hodgens said.
The findings also suggest that the factors driving retirement confidence change once consumers actually retire.
For pre-retirees, Limra found wealth, planning and protected lifetime income work together in determining perceived preparedness. Among retirees, wealth becomes more important, with planning and protected income serving as stabilizing factors.