Market optimism falling among advisors

Nearly a third of advisors surveyed (30 percent) claim that as many as half of their clients are failing to stay on track to maintain enough assets to support their preferred lifestyles in retirement.

More than half of advisors (55 percent) cited setting reasonable expectations around spending policies as one of their key challenges, and an additional 44 percent found similar struggles in maintaining the sustainable spending plans they do create with clients, given factors such as increasing life spans and escalating health care costs.

Only 18 percent of advisors said that they don’t believe yield-focused investment strategies (or strategies that rely on dividends and interest alone to provide income) are a strong option for some or all of their clients.

Yet, despite the fact that many advisors see these strategies as viable options, many also noted potential deterrents including capital erosion due to inflation (53 percent of advisors) and higher credit risks (40 percent).

Only 11 percent of advisors would recommend them to the majority of their clients.

Of the advisors who said that yield-focused strategies were not a good option for all of their clients, more than two thirds (70 percent) would recommend a total-return approach that looks at the sum of interest, dividends and capital appreciation when considering the ability to generate income.