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Amid Rising Sales, Advisors Cite Guaranteed Retirement Income as Top Reason for Selling Annuity Products
Annuity sales are rebounding and advisors expect to maintain, or even increase, their use of annuity products in the near future. At the same time, the composition of advisors is changing, as many advisors shift further toward fee-based compensation models. Annuity providers have an opportunity to support advisors using a variety of compensation models through this transition while highlighting the important benefits annuity products can bring to advisors and their clients.
When asked how important a list of factors was as reasons for selling annuities to clients, advisors cite the ability to generate guaranteed income in retirement as the top factor. In fact, over three-quarters (76%) of advisors, regardless of compensation type, cite this factor as very important. Diving into different types of annuities reveals that retirement income products and guaranteed rates are also among the leading consideration drivers for variable and fixed annuities, respectively. Continue reading