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Warm, Tepid, or Cold? Perspectives on Deferred Annuity Non-Buyers

Jafor Iqbal 11/26/2018

Four in 10 investors may buy an annuity in the future. Read this report to identify and win these warm prospects.

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Industry Issues

Annuities almost stand alone among all investment products for their ability to incite equally intense reactions of love or hate, like or dislike. By segmenting clients, can advisors identify, focus on, and win prospects who are open to buying annuities?

Key Findings

  • Deferred annuity non-buyers fall into three distinct categories or mindsets:
  • WARM: May buy annuity someday,
  • TEPID: Annuity is good, but not for me, and
  • COLD: Would not buy an annuity.
  • Retirement goals and preferences for income in retirement distinguish WARM-to-annuity non-buyers from COLD ones. Knowing these differences can help advisors determine focus time and resources on WARM-to-annuity prospects.
  • Advisors who help clients look at retirement risk from an income perspective may build more trust and make more annuity sales.

Related Resources

Related Research

The Retirement Income Reference Book — Fourth Edition

Oct 29, 2018

The Retirement Income Reference Book (Fourth Edition) provides a wealth of facts and insights at your fingertips. Use it to set strategy, make presentations, or conduct training.

The Value of Guarantees - Why Lifetime Income Matters

Oct 19, 2018

Buying an annuity is often an emotional decision. Learn how your company and its representatives can find and help guaranteed-income seekers.

A New Perspective on Retirement Planning - Affluent Investors Market Segmentation

May 12, 2015

This unique approach for devising an attitudinal market segmentation can help firms and advisors successfully deliver customized offerings to their clients.

Annuities: Love Them When You Know Them, Hate Them When You Don’t (2014)

Aug 22, 2014

This analysis specifically looks at households with or without an annuity, and their perceptions of annuities.

Meet the Project Director

Jafor Iqbal

Jafor Iqbal studies retirees and the role of financial advisors in retirement income planning. In this role, he leads the LIMRA Secure Retirement Institute's retirement income initiatives. His leadership and focus in retirement income has resulted in the publishing of LIMRA’s Retirement Income Reference Book, which is a complete mapping of the retirement income marketplace that includes retirement risks and issues faced by consumers and advisors, as well as the Fact Book on Retirement Income. Prior to joining LIMRA in 2009, Iqbal was Director of Product Management at Fidelity Investments.

Assistant Vice President
LIMRA Secure Retirement Institute
jiqbal@limra.com


For more information, please contact jiqbal@limra.com.

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