Protected accumulation may get another look as financial professionals anticipate long economic slog ahead
San Francisco, CA and Nashville, TN – Sept. 1, 2020 – Joint research from RetireOne® and Jackson National Life Insurance Company® (Jackson®) finds that 68% of registered investment advisors (“RIAs”) would consider recommending an annuity in cases where clients asked about annuities. For the remaining third who say they would not recommend an annuity, cost, lack of liquidity and complexity are the main concerns cited. These findings come as 62% of respondents anticipate the economic recovery from the coronavirus to take at least 12-18 months.
“We are not surprised to see that RIAs are open to recommending annuities for clients who inquire about them,” said Scott Romine, President, Retirement Solutions, Jackson National Life Distributors LLC (JNLD). “While these results are encouraging, there is still an opportunity to educate a large portion of these financial professionals about next-gen annuities designed for RIAs and how they can help reduce the cost and complexity.”
Nearly half (45%) of the financial professionals surveyed indicated that they discuss retirement income plans during initial meetings with clients. However, over 1 in 4 say they don’t begin to talk about converting defined contribution plans into retirement income until clients are within five years of retirement.
“We uncovered a missed opportunity for a pretty big swath of RIAs with this survey,” said David Stone, RetireOne Founder and CEO. “Annuities in general, and lifetime income solutions specifically, are especially helpful for yielding some certainty in uncertain times. Financial professionals who wait until clients are within that 10-year retirement window to discuss income strategies may miss out. Utilizing lifetime income solutions at the right time can maximize opportunities to bridge the fragile decade, when their clients face one of the more serious headwinds to retirement security: sequence-of-returns risk.”
The survey also found that nearly half of RIAs rely on solution-oriented discussions with topic experts for product selection and/or portfolio strategy, while websites (64%) and publications (59%) lead the way. Meanwhile, only 38% of respondents say they rely on “Thought Leaders” for guidance.
101 financial professionals who identify themselves as RIA, hybrid, or dually-registered advisors responded to the survey. 3 in 5 of them anticipate a slow economic recovery from the global pandemic lasting a year or longer, while over half believe that there will be extensive structural changes in our economy when growth resumes.
Visit the RetireOne “2020 RIA Firm Practice Survey Infographic” to see more of the results.
Serving over 900 RIAs and fee-based advisors since 2011, Aria Retirement Solutions’ RetireOne® is the leading, independent platform for fee-based insurance solutions. With offerings from multiple “A” rated companies, RIAs may access this fiduciary marketplace at no additional cost to them or their clients. Currently servicing over $1 billion of retirement savings and income investments, RetireOne continues to grow in its mission to provide advisors and their clients valuable retirement solutions that are simple to use, easy to understand, and delivered with outstanding service. Learn more at RetireOne.com and follow us on Twitter @RetireOne.
Jackson is a leading provider of retirement products for industry professionals and their clients. The company and its affiliates offer variable, fixed and fixed index annuities designed for tax-efficient growth and distribution of retirement income for retail customers, as well as products for institutional investors. Jackson is a proud founding member and co-chair of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organization formed and supported by 24 of the nation’s financial services organizations to create awareness and educate Americans about the importance of protected lifetime income. With $294.6 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy and supports nonprofits focused on strengthening families and creating economic opportunities in the communities where its employees live and work. For more information, visit www.jackson.com.
*Jackson has $294.6 billion in total IFRS assets and $265.4 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2020).
Jackson is an indirect subsidiary of Prudential plc, an Asia-led portfolio of businesses focused on structural growth markets. The business helps individuals to de-risk their lives and deal with their biggest financial concerns through life and health insurance, and retirement and asset management solutions. Prudential plc has 20 million customers (as of June 30, 2020) and is listed on stock exchanges in London, Hong Kong, Singapore and New York. Prudential plc is not affiliated in any manner with Prudential Financial, Inc. a company whose principal place of business is in the United States of America, nor with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Annuities are long-term, tax-deferred vehicles designed for retirement, and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
Lifetime income is typically derived through the purchase of an add-on living benefit, involves an extra charge in addition to the ongoing fees and expenses of the annuity, and may be subject to limitations or conditions. Any guarantees provided are backed by the claims paying ability of the issuing insurance company.
Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact Jackson for more information.
Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.
Jackson National Life