Annuity awareness should be an ongoing initiative for our industry — not just a focus during Annuity Awareness Month (June).
I read article after article this past June about the complexities of annuities; however, when we explain to clients that annuities provide guarantees, protection from outliving their income, and tax advantages, they easily understand.
Advisors who engage their clients in annuity discussions get ahead of the game for several reasons.
An American turns 60 every 7.5 seconds. Think about that statistic for a moment. And, think about the nearly unlimited pool of prospects who are looking for retirement income.
The ratio of individuals under age 65 to those above 65 has reduced to 2.9.That means a lot less people are paying into Social Security, which places an undue amount of pressure on our entitlement programs. The need for self-reliance in America has never been greater, and at the same time, our average retirement account balances have never been lower.
Due to a variety of cultural, lifestyle and medical improvements, baby boomers will live 20-30 years after retirement. That is in stark contrast to their parents, who typically lived for only 10-15 years. Given longer life expectancies, discussions about inflation have never been more important. Today’s retirement conversations gain momentum with talk of stable income and growth on a depreciating asset.
In our industry, we spend a lot of time talking about the interest rate environment, regulation, compliance and product training. Regardless of the challenges and perceived impediments, the future holds unlimited possibilities. Americans need our services and products at unprecedented levels. It’s up to us to help them.
Make yourself aware of all the opportunities. Once you consider them, you can’t help but want to talk about using annuities to positively change a person’s retirement.