More than half of advisors who work with clients that have less than $500,000 believe annuities are an important part of those clients’ financial plans, according to a LIMRA survey.
Fifty-six percent of advisors surveyed said that in 2011, the benefits of guaranteed income products like annuities outweigh the benefits of products without guarantees, up from 40% in 2009. Furthermore, 60% say their clients are interested in these products.
“Our study found that the majority of advisors feel longevity—outliving their assets—to be the greatest risk facing their clients,” Matthew Drinkwater, associate managing director for LIMRA’s retirement research, said in a statement. “This is particularly true for less affluent households, who often must rely on their personal savings to generate retirement income and do not have enough assets to self-insure against longevity risk.”