Financial advisors would like to see financial statement providers do a better job of including information about clients’ immediate income annuities.
The Retirement Income Industry Association (RIIA), Boston, discusses income annuity recordkeeping concerns in a summary of results from a recent survey conducted by the RIIA’s Income Annuity Standards and Readiness Working Committee.
The committee polled financial advisory firms, product manufacturers, and service providers.
Gary Baker, chair of the working committee, says advisors reported that, when a client buys an income guarantee, the money usually vanishes from the consolidated statements that the client and the advisor receive.
Only about 15% of distributors and manufacturers now provide some information about annuitization products on client statements, the RIIA says.
About two-thirds of the survey participants said they thought income annuity data would be interest to clients, and many said they thought adding the data to consolidated statements could increase use of the products.
The working committee will now try to establish standards for sharing income annuity data and for reporting the present value of the income stream, the RIIA says.
- Allison Bell