Adviser Survey on Lifetime Income Products
SURVEY RESULTS
A Retirement Edge survey of advisers shows that lifetime income products are becoming an important part of retirement planning for some advisers, with a majority of Retirement Edge members recommending them to clients. However, challenges such as product complexity, fees, and platform compatibility remain significant barriers to their broader adoption. Despite these challenges, there is optimism about the future role of these products in the retirement landscape. The findings provide insight into the adoption rates, preferred providers, key difficulties, and expected trends in the industry.
Key Findings
1. Product Usage
The most commonly recommended lifetime product providers for Retirement Edge members are Challenger and Allianz Retire+.
40% of the advisers use multiple providers, demonstrating a preference for a diverse selection of products.
2. Experience and Recommendations
The advisers have varying levels of experience, with 33% having over 11 years of experience advising on these products, and another 33% having 6–10 years of experience. 20% had less than five years of experience and the remainder have not used annuities before.
Recommendation volumes vary, with 33% recommending 3 to 5 products per year, and 20% recommending 6 to 12 per year. 27% of the advisers do not recommend these products.
3. Challenges Faced
The most common challenge identified by 67% of respondents is product complexity - making it difficult to provide clear advice.
33% of advisers also struggle with fees and charging models, while 27% face issues with platform software compatibility. 20% mentioned client pushback as a significant barrier.
4. Future Outlook
60% of the advisers believe that lifetime income products will play a larger role in the retirement landscape over the next 5 years, indicating a positive future outlook for these products.
27% remain neutral on this outlook, while 7% strongly disagree with the predicted growth of lifetime income products.
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