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A recent studyNine in 10 Advisors Agree by the LIMRA Secure Retirement Institute asked more than 1,000 financial professionals what is the most valuable service they provide.

The number one answer across all financial professionals was ‘keeping their clients from running out of money in retirement.’  One way to do this is by investing some of the client’s assets into a guaranteed income product, like an annuity.  Almost 1 in 3 advisors surveyed agreed.

How much should be invested?

This depended greatly on the type of advisor and segment of the market they served. On average, advisors suggested that just under one third of their assets should be used to buy a guaranteed income product.  However, while 9 in 10 advisors agree guaranteed income products provide their clients peace of mind, 40 percent of advisors say these products compromise their ability to properly manage their clients’ portfolio and 30 percent believe the products are too complicated.

Who should own them?

More than 70 percent of advisors view affluent (assets $500k-$999k) and mass-affluent (assets $100k-$499k) clients are most suitable client base for guaranteed income products. However, 3 in 10 advisors whose average clients are high net worth (assets $1 million or more) believe these clients could also benefit from guaranteed income products.

 

At a time of economic uncertainty and expanding longevity, guaranteed income products offer people of every income level assurance of financial protection in their retirement.

 

These findings were part of a larger advisor study: What Do Advisors Think About Retirement Income Planning, which is available to LIMRA members.

Media Contacts

Catherine Theroux

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ctheroux@limra.com

Brooke Lacey

Public Relations Specialist

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Mobile Phone: (413) 530-6184

blacey@limra.com