More advisors are embracing the use of guaranteed income streams, according to new research from Cerulli Associates Inc.
Almost 30% of advisors increased their use of guaranteed income streams in 2009, according to researchers at Cerulli, Boston.
Fee-based advisors and those using a fee-and-commission mix are most likely to recommend living benefits features as a means of generating income from a variable annuity, researchers say.
But advisors who derive less than half of their revenue from fees are more likely to rely on systematic withdrawals for their qualified VA business, they add.
Still, advisors remain reluctant to embrace holistic retirement planning, containing elements such as guaranteed income streams and budget analysis, according to John Hsu, who helped conduct the research. “Responses to the market crisis (reducing risk in client portfolios and reducing withdrawal rates) have been simplistic at best,” he says.