Last December, the Alliance for Lifetime Income and CANNEX issued the second phase of the Protected Retirement Income and Planning Study. The study’s most important finding was that the annuities and other income-producing assets were the most popular choices among investors who were asked to design a hypothetical $1 million retirement portfolio. Researchers found that investors held annuities for 13% of their whole portfolio on average. Dividend-paying equities (20%), real estate (14%) bank CDs (11%), and bonds (14%) round out the top five asset categories (10%). In addition, the survey indicated that 85% of investors are either interested in or currently hold an annuity that guarantees lifelong income. The Alliance and CANNEX released a corollary survey finding that just 18% of financial professionals feel that their consumers are particularly interested in annuities with lifetime income. These statistics show that annuities may safeguard a client’s income. Several factors may be driving investors’ interest in income-producing assets. In this period of growing inflation, seniors may worry about their retirement income. To make it easier for their retirement plans to include the lifelong income products, Congress approved the “Setting Every Community for Retirement (Secure) Act,” which was signed into law in 2019. Because of the widespread media coverage that the legislation has received since it was passed, more people are aware of annuities in general and guaranteed lifetime income products in particular. COVID-19 may be causing more individuals to seek new financial alternatives. Longer life lengths may also be a contributing reason to a rise in interest in goods that may promise a lifetime of income. There will be an all-time high of 85.6 years of life expectancy for Americans in 2060, according to a U.S. Census Bureau research released back in February 2020. When discussing annuities with their customers, financial advisors might point out:
- An annuity may provide a person a regular stream of money they cannot outlive. Your customer’s death benefit may include market volatility protection.
- Fixed, fixed index, variable, or delayed annuities may give lifetime income and retirement income security.
- Annuities with growth potential may help combat inflation.
- Annuities may augment retirement income sources like Social Security or savings.
- An annuity is one of few financial products that may provide lifetime income. An annuity may boost your income.
- An annuity might complement a well-rounded financial plan that includes liquid assets. By withdrawing a percentage of the account value, annuities may create a continuous income. If you need full access to your cash, an annuity may not be optimal.
- New research excites our industry.
Contact Information:
Email: [email protected]
Phone: 9143022300
Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300
