Athene Exec Highlights Growing Demand for Annuities Amid Low Interest Rates

Michael Downing, co-president of Athene USA and COO of Athene Holding, discussed the persistent concern among retirees about outliving their savings, emphasizing annuities as a key solution to bridge the retirement savings gap. Despite a low-interest-rate environment, annuities remain a valuable retirement option due to their ability to provide guaranteed downside protection and outperform traditional certificates of deposit (CDs). Demand for annuities continues to grow, driven by an aging population and the need for more secure retirement income strategies. With interest rates expected to stay low for an extended period, there is a temptation for individuals to seek higher returns through riskier investments. Downing suggests that a balanced, integrated annuity strategy—allocating 30 to 40% of retirement savings to annuities—can effectively manage both low rate and market volatility risks. This approach can provide retirees with more confidence in their financial security, even amid current market uncertainties.