Financial advisors have yet to coalesce around a common methodology or set of products for generating retirement income for their retiree clients, making it more challenging for fund companies and annuity providers to leverage this market. Given today’s low interest rate environment, most advisors rely on traditional solutions, including dividends from equities or similar funds and ETFs, to create a retirement income stream for their retiree clients.
But support plays a role too, according to a report from GDC Research and Practical Perspectives. Fewer than one in five advisors are highly satisfied with the retirement income support available to them from asset managers or insurance companies. Many advisors still struggle with complexity, lack of a track record or understanding of the benefits of retirement income products and are seeking more training and education from providers, the report found.
The use of annuities appears to be far more selective than the use of securities-related products, according to the report, with only 10% of advisors using variable annuities for more than 50% of their retirement income clients.
