NAVA And InFRE Rolling Out
Retirement Income Management Course
“The annuity industry will lose if it doesnt get behind this” new educational retirement income management course, said a women attending a meeting here.
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She was referring to the new Retirement Income Certificate Course jointly developed by National Association for Variable Annuities, Reston, Va., and International Foundation for Retirement Planning, Lubbock, Texas. Both organizations are nonprofit.
The comment came at the close of a panel discussion debuting the course at NAVAs annual marketing conference.
The course aims to educate advisors on how to identify and explain the trade-offs a client has to make when converting retirement assets into lifetime income streams, said panelist Richard M. Reilly of Worcester, Mass.
NAVA wanted to develop a retirement income course because it had become aware that the industry needs to take a “planning approach, not a product approach,” to retirement income management, indicated Reilly, former president and CEO of Allmerica Financial Life Insurance & Annuity Company.
NAVA sought out InFRE as a partner, due to the Texas organizations expertise in offering retirement management courses for counselors and administrators in government pension programs, he said.
Initial distribution will be through NAVA member companies, who will, in turn, offer the course to their respective distribution arms, said Reilly.
The nation is facing enormous change in the retirement market, said A. Scott Logan, a former NAVA chair and an industry veteran who stays active in the business. He is now a registered representative at Cornerstone Financial Advisory Inc., Fort Myers, Fla.
Current retirees under age 70 control $3.3 trillion in wealth, excluding homes, he noted, citing statistics from SRI Consulting Business Intelligence, 2003. Of that amount, about $1.6 trillion is in defined benefit plans and about $1.7 trillion is in defined contribution plans, Logan said. Assets in IRAs add even more to those numbers.