What's Happening?
A recent survey conducted by Global Atlantic Financial Group highlights a significant gap between the priorities of investors and financial advisors regarding retirement income strategies. The survey found
that 88% of investors prioritize investments that provide a steady, guaranteed income stream in retirement, compared to only 66% of advisors who share this priority. Additionally, 83% of investors view guaranteed income beyond pensions or Social Security as important, yet less than half of advisors emphasize this need. This disconnect presents an opportunity for financial professionals to better align with their clients' retirement-income priorities and investment-protection strategies. The survey suggests that financial advisors can improve client relationships by engaging in more personalized conversations and understanding their clients' financial goals, particularly during the 'fragile decade'—the last five working years and the first five years of retirement.
Why It's Important?
The findings of this survey underscore the importance of financial advisors aligning their strategies with the evolving needs of their clients, particularly as they approach retirement. With market instability and rising healthcare costs impacting retirement savings, the demand for guaranteed income is becoming increasingly critical. Advisors who fail to address these priorities risk losing client trust and potentially their business. By focusing on guaranteed income solutions, such as annuities, advisors can offer clients the predictability and protection they value most, thereby enhancing client satisfaction and retention. This alignment is crucial as clients' priorities shift towards preserving wealth and generating a steady income in retirement.
What's Next?
Financial advisors are encouraged to engage in more frequent and meaningful discussions with their clients about retirement income strategies. By asking targeted questions about financial security and exploring options for guaranteed income streams, advisors can better meet their clients' needs. As the market continues to fluctuate, advisors must stay informed about the latest financial products and strategies that can offer stability and peace of mind to their clients. This proactive approach will be essential in navigating the challenges of the current economic environment and ensuring clients' financial well-being in retirement.
