Study Reveals That Most Advisors Favor Annuities For Their Clients
A new study published by LIMRA shows that 55% of advisors believe that annuities should be included in their clients’ portfolios when they have less than $500,000 in investable assets. Given this retirement amount needs to address their clients’ needs for the remainder of their lives, the greatest risk to these clients is outliving their assets. Statistically, they simply do not have enough cushion to self-insure against longevity risk.
Also, this study found that 42% of advisors with high-end clients say that guaranteed income products are still extremely appropriate for clients with investable assets of $1 million or more. This is likely due to the fact that although their next egg is larger, they are accustomed to have higher annual expenses thus still need to offset longevity risk so they can maintain their standard of living.
If you feel anxiety about outliving your assets, be sure to at least seek advice from a licensed insurance agent to review your particular needs.
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