Many retirement investors are prioritizing retirement income and asset protection more than growth, according to new research from the Insured Retirement Institute (IRI).
The study, which polled financial professionals on the attitudes of their clients, said the top concerns among their clients revolve around inflation, market volatility, and the possibility of a recession. However, the concern of “running out of money” was less prominent, possibly due to the utilization of annuities, which offer protection and a sense of security even during periods of uncertainty.
“The implications of these findings are far-reaching,” Frank O’Connor, vice president of research at IRI, said. “Financial advisors who leverage annuities, capable of providing protection against market losses and ensuring long-term income security, are poised to align more effectively with their clients’ evolving needs. As the market landscape evolves, advisors equipped with these insights are better positioned to navigate market disruptions and deliver tailored solutions that resonate with clients.”
The report — called Advisor Views on Client Goals, Concerns, and Preferences – also revealed that clients showed heightened interest in “downside protection” features and “guaranteed income.” This indicates that they are not solely focused on maximizing growth but are equally concerned about safeguarding their investments and securing a reliable income stream.
“These findings reinforce the value annuities can provide to investors and the importance of annuities to financial advisors as a tool that can uniquely address the goals and concerns clients express most frequently,” O’Connor said.
The study was based on responses from financial advisors with at least one year of experience and recent annuity sales.