Annuities are a valuable yet often overlooked tool for Generation Z's retirement security, helping to safeguard their future against market swings and reduce the risk of financial insecurity in later life, writes John Stevenson. He urges advisors to educate young clients about the guaranteed income that fixed and deferred annuities can provide, especially in a volatile market environment.

A study from Jackson National Life Insurance and the Center for Retirement Research at Boston College has found that many Americans nearing or in retirement have more market risk exposure than they might think. Traditional portfolios may still be exposed to risk from systemic market events, highlighting the value of annuities and other protective measures.

Financial scams targeting Americans over age 60 have surged, with losses rising from $122 million in 2020 to nearly $700 million last year, according to a Federal Trade Commission report. Criminals are increasingly using artificial intelligence to impersonate federal agencies, banks and tech companies and targeting savings accounts, 401(k) assets and Social Security benefits.

Marking its 90th anniversary, Social Security continues to serve as a foundational income source for retirees, with nearly 70% of Americans expecting to rely on the program for retirement income, according to research from the Transamerica Center for Retirement Studies. Yet, 71% of non-retired Americans worry about Social Security's long-term viability.

Cuts to Medicare and Medicaid pose significant risks to older Americans, according to Dwayne Clark of Aegis Living, with proposed reductions threatening to close facilities, reduce caregiver availability and leave vulnerable adults with fewer options. Clark notes that many older middle-class Americans are spending down their life savings to qualify for assistance, selling homes and depleting retirement accounts to "become poor enough to be eligible for Medicaid, even after a lifetime of financial prudence."

The Trump administration has asked the 5th US Circuit Court of Appeals for another extension on a pause in a consolidated lawsuit against the Labor Department's fiduciary rule. The latest filing asks for a third 60-day pause, which would extend through Oct. 14.

AI has evolved from basic financial modeling to dynamic, real-time insights, significantly enhancing advisors' capabilities, writes Tim Clairmont of Clear Financial Partners. However, clients may have concerns, perhaps about data security or the potential for errors. Clairmont encourages advisors to be transparent about their AI usage, reassuring clients that it is a tool to enhance, not replace, human judgment.

Financial advisory firms can help ensure long-term success by focusing on developing the next generation of advisors, according to Jason Inglis of Trilogy Financial. This involves mentorship, structured career paths and modern tools, rather than relying solely on individual production. "Many firms still treat advisor development as a cost center, not a strategic asset," Inglis writes.

The Insured Retirement Institute's State of the Industry report is a members-only publication that includes annuity market data, operations and technology, and regulatory and legislative trends in 2024, as well as notable themes emerging in 2025. Access it here.

The Insured Retirement Institute's 2025 Retirement Security Blueprint includes 33 proposals to enhance and strengthen retirement security for more of America's workers and retirees. Access it here.