Consumers and financial advisors, increasingly concerned about meeting retirement goals, are finding that variable annuities effectively address financial security concerns, according to a new survey by AllianceBernstein and annuity advocacy organization Insured Retirement Institute (IRI). The study, released Monday at the IRI Marketing Summit in New York, offers insights into how and why financial advisors are using VAs as demand for more predictable and steady income increases.
“The fact that fewer people today feel confident that they will be able to meet their financial needs in retirement is driving a robust market for lifetime income solutions,” IRI president and CEO Cathy Weatherford (left) said in a statement. “Our survey found that more and more financial advisors are turning to VAs as a sound portfolio solution because they provide guaranteed income and can help clients attain financial security in retirement.”
Weatherford believes the 2008 financial crisis has changed a lot of minds about insured retirement solutions, namely variable annuities. As advisors looked for a way to avoid a repeat of this experience, they focused more closely on the design of the variable annuity, with its explicit guarantee of retirement income.