What You Need to Know
- Clients may have to take some risk to earn good returns.
- They might want to put part of their savings in products that offer guarantees.
- FIAs offer guarantees.
A smart retirement portfolio includes a mix of products and investments that work together to create a steady stream of income during your clients’ golden years.
One product that should be part of any financial professional’s toolbox is the fixed indexed annuity (FIA), which can provide guaranteed income during retirement.
Given what we have learned about market instability in light of the global pandemic, as well as wild cards such as inflation and geopolitical unrest, offering your clients access to a guaranteed income stream is a good way to help them defend themselves against market volatility.
The Strategic Need for FIAs
COVID-19 has highlighted the insecurities and concerns Americans feel about their retirement. A survey included in the Indexed Annuity Leadership Council’s (IALC) latest report, Annuities, Retirement, and the Pandemic, found that 30% of U.S. workers who plan to retire at some point have delayed their retirement plans because of the pandemic.
What Your Peers Are Reading
This number rises to 33% among those planning to retire in the next five years. In addition, 45% say that post-pandemic, saving for the future is more of a concern, and 42% are more worried about running out of money in retirement.
Although global economies ebb and flow, research from the Brookings Institution found that millennials “face an economic future with projections of lower rates of return and economic growth than in the past; this means [they] will have a harder time than previous generations accumulating sufficient funds for retirement.”
The data is clear: Americans are stressed about their financial futures.