Nine in 10 investors, but only two-thirds of advisors, prioritize investments for retirement that provide a steady income stream, according to a survey released Tuesday by Global Atlantic Financial Group, which offers annuities and other insurance products.
Similarly, while 83% of investors view guaranteed income beyond pensions or Social Security as important, only 46% of advisors emphasize this need.
These results point to an opening for financial professionals to deepen their client relationships as investors navigate their last five working years and the first five years of retirement, Global Atlantic said. Doing so is especially important now as market instability and its potential effect on retirement savings and the need to address these differing opinions is more pronounced than ever.
“The insights from our survey reveal a clear chance for financial professionals to spend more time with their clients and understand their financial goals,” Jason Bickler, co-leader of individual markets at Global Atlantic, said in a statement. “By asking additional questions, financial professionals can build portfolios that reflect what many clients value most, which is steady, guaranteed income and lifetime security.”
Artemis Strategy Group conducted the survey online in December among 1,009 investors ages 55 to 75 with $250,000 to $2 million in investable assets who work with a financial professional, and 514 financial advisors.
Differing Opinions
The survey found other discrepancies between what investors say they need in retirement and the emphasis that advisors give them. Eighty-eight percent of investors prioritized investments that provide a stable rate of return in retirement, but this was a priority for only 57% of advisors.
Eighty-six percent of investors said they value principal protections, compared with 52% of advisors. Eighty percent of investors emphasized protection of investments to limit downside risk, versus 55% of financial professionals.
Three-quarters of investors in the survey reported that they had discussed protection strategies with their advisors, but just 54% said they feel adequately protected from market downturns.
The survey results highlight the importance for advisors to engage clients in robust conversations about retirement and income security. Sixty-five percent of investors said creating or using a plan that provides income for life is a financial priority, and 56% prioritized protecting assets over growth.
Despite this focus, only 46% of investors said they had spoken with their advisor about annuities, which can offer stability and guaranteed income, Global Atlantic said.
“Consumers are often looking for predictability and protection, and these survey results point to a strong opportunity for financial professionals to reinforce those priorities with strategies and solutions that deliver guaranteed income,” Emily LeMay, co-leader of individual markets at Global Atlantic, said in the statement.
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