Retirees and pre-retirees overwhelmingly want their financial advisors to present them with a palate of retirement income strategies, but few advisors actually do, a new survey found.
Consumers also believe financial advisors have a responsibility and a duty to present them with financial products that provide guaranteed lifetime income, according to the 3rd Annual Guaranteed Lifetime Income Study of 1,105 retirees and pre-retirees.
The gap between what consumers say they want and what consumers say advisors are giving them is a sign of a stubborn “disconnect” between what annuities can provide and what consumers say they want, said Doug Kincaid, research director for Greenwald & Associates, which conducted the study.
“With both the consumers and the advisors, that goes unspoken,” he added.
Nine in 10 respondents said financial advisors should present them with multiple retirement income strategies, the survey found.
In addition, 60 percent of respondents said advisors have a responsibility to present them with products that offer guaranteed income benefits as part of a retirement income strategy.
The joint survey with Cannex, an analytics platform that supports the exchange of pricing information for annuity and bank products, polled retirees and pre-retirees ages 55-75 with more than $100,000 in household assets.
The industry sold $222 billion worth of individual fixed and variable annuities last year, 6 percent less than 2015, LIMRA Secure Retirement Institute said. Low interest rates have made it more difficult to sell annuities, but cost and complexity were also cited as drawbacks.
Monthly Social Security deposits, on which millions of retirees rely for income are, in fact, the nation’s largest annuity program.
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