“A new survey suggests that a growing number of financial advisors will consider annuities that are low cost and less complex.”
Former FA-Mag Managing Editor Dorothy Hinchcliff has launched a new retirement-focused publication called Rethinking65. Dorothy and the Rethinking65 team featured RetireOne’s joint “2021 RIA Protected Accumulation + Retirement Income Survey” with Protective in an article titled, “Advisors Warm Up to Annuities.”
The article reports on trends revealed in the survey that show how, year over year, resistance among registered investment advisors is waning. A growing number of RIAs will consider annuities that are low cost, more liquid, and less complex.
Rethinking65 staff also point out that advisors appear to be opting for CDs and bonds for principal protection, even in this challenging low-rate environment:
If clients need principal protection, about the same percentage of respondents said they would recommend fixed annuities (38%), fixed index annuities (38%) or CDs (41%). But the clear winners for principal protection were bonds/fixed income (76%), money market funds (56%) and cash (48%). Clients who want principal protection could get payout rates for fixed annuities over five-year durations that could be triple the payout of CDs over the same time period, the survey sponsors said in a press release.