Annuity sales are being influence by increasing emotion and a desire by buyers to secure their retirement, not accumulate wealth, a new report finds.
Cathy Weatherford
“Increased market volatility, shrinking retirement savings, and the disappearance of pensions have investors taking a long hard look at the value of annuities in their portfolios,” said Marie Rice, custom research practice director at Cogent Research, in a statement.
The report, released by Cogent Research and the Insured Retirement Institute (IRI), found that nearly two-thirds (65%) of advisors who sell annuities indicate that guaranteed income options are expected to increase in importance over the next five years — more so than any other factor. The report was based on conversations with financial advisors, investors, broker/dealer gatekeepers and insurance carriers.
Eight in 10 advisors who sell annuities say they are having more client discussions about retirement income planning than they did five years ago.
Exactly 34% report the main reason for purchasing an annuity is guaranteed income, and two-thirds (68%) of advisors report that they have received at least one client request for an annuity in the last 12 months.
“Opportunities abound for the financial services industry to not only meet the growing investor demand for insured retirement strategies, but also to develop business practices that support the continued acceptance and use of these products,” said IRI President and CEO Cathy Weatherford. “Our research has found that the most important retirement income goal, for all investors — annuity owners and non-owners alike — is to ensure they do not run out of money. With the market being ripe for insured retirement strategies, the industry is in an extraordinary position to exponentially grow.”
Emotions, desire to secure retirement drive annuity sales via IFAwebnews.com .
No related posts.