Many U.S. financial advisors already are using annuities and life insurance policies to help clients convert retirement savings into retirement income.[@@]
Life and annuity products account for 3 of the 5 most popular tools in advisors’ income planning tool chests, according to researchers at Fidelity Investments Institutional Services Company, Boston.
The researchers commissioned a Web and telephone survey of 334 advisors in June.
Fidelity Investments Institutional is an affiliate of Fidelity Investments, Boston, the giant mutual fund company, and its survey found that stock mutual funds are the most popular retirement income planning tool in the advisor community: 74% of the survey participants said they often recommend stock funds to income planning clients.
But variable deferred annuities ranked second, with a 61% “often recommend” rate, and the “often recommend” rates were 40% for life insurance policies and 37% for income annuities, the Fidelity researchers write.
The researchers note that retirement income planning is a popular topic that is becoming more popular each day.