Creating retirement income strategies for your clients

8/6/2019 Creating retirement income strategies for your clients

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Retirement Income Survey





Maintaining the client's lifestyleAdvisers' main focus in helping a client prepare for retirement

4

15.9%14.5% 16.9%

Asset accumulation Preservation of

wealth Income 4.8%

volatility Main

client's

Based on 629 responses to this question.



Maintaining the client's lifestyle: Non RIAs vs. RIAs

RIAs

Non‐RIAs

Asset accumulation Preservation of wealth

Income generation Reduce portfolio volatility

M

14.6% 14.1%18.3%

4.9%

18.7%15.3%

13.8%

4.4%

Based on 426 non‐RIA and 203 RIA responses to this question.



At least half of clients will be able to maintain current lifestyleTaking into account current savings and projected investment income

67

113

0%‐10% 11%‐25% 26%‐50% 51%‐75% 76



At least half of clients will be able to maintain curren

Non RIAs vs. RIAs

43.0% 38.7%RIAs

Non‐RIAs

38.8% 41.4%

15.5%

16.2%

‐ ‐ ‐

Based on 278 non‐RIAs and 142 RIAs who responded to this question. Graph does not include "0%‐10% " and "11%

5% in both non‐RIA and RIA samples.



Preserving capital and managing volatilityKey goals when establishing clients' retirement plans

24.5% 24.9%

15.4% 15.1%

11.1%

Preserving capital

Managing volatility

Participating in makret upside Covering health

care and medical expenses

Eliminating debt

Based on 596 responses to this question. Respondents were allowed to choose more than one answer.



Preserving capital and managing volatility: Non RIAs vs. RIAsAdvisers at RIAs were slightly more concerned with managing volatility than preserving capital

23.9% 25.6%

24.7%

16.8% 14.4%

24.5%

14.7%15.4%

11.1%

11.3%

Preserving capital

Managing volatility Participating

in makret upside

Covering

health care Eliminating

expenses

Based on 401 non‐RIA and 105 RIA responses to this question. Respondents were allowed to choose more than one



Longevity and lack of assets looming over stabilityToughest obstacles in creating a stable plan for clients

Other7.4%

Lack of assets

payments.

Long‐term care cost 4.2%

Longevity

Inflation/interest rate volatility 18.8%

Health‐care expenses 13.1%




Longevity and lack of assets: Non RIA vs. RIAs

Other 7.1% 7.9%

Lack of assets 26.4% 29.2%

Longevity 29.1% 27.5%

Inflation/interest rate

volatility18.7% 19.1%

Health‐care expenses 13.2% 12.9%

Based on 364 non‐RIA and 178 RIA responses to this question. Does not show "Uncertainty of Social Security paym

as rates were less than 5% for each choice in both non‐RIA and RIA samples.



Increase in advisory services As clients near retirement, their need for advisory services increases

Stays the same.

Decrease3.7%

Increase






Revenue boost Increased number of services allowed advisers to generate additional forms of revenue

.

28.0%

Yes No




Doing more at non RIAsMajority of advisers at non‐RIAs said increased services allowed them to generate additional forms of revenue

78.0%

57.1%

42.9%

.

Yes No




Asset responsibilityClients approaching retirement ask advisers to supervise more assets

Stays the same.

Decrease6.5%

Increase




Asset responsibility: Non RIAs vs. RIAs

Stays the same

34.9%

.

Decrease6.3%

7.0%

Increase

58




39.9%

401(k)sMost common type of account acquired if new assets are accumulated from existing clients

26.4%

17.7%

5.3% .

401(k)s Brokerage IRAs Keogh plans SIMPLE trusts




Account types acquired: Non RIAs vs. RIAs

41.6%

23.0%

39.2%

27.9%

17.6%

17.7%

5.0% 5.9%

5.9% 5.4%

s ro erage s eog p ans trusts

Based on 370 non‐RIA and 175 RIA responses to this question. Respondents were allowed to choose more than one



Frequently used alternative investment strategies

155

102

126

2

51

52




187

Frequently used alternative investment strategies: Non RIAs

111123

7279

2

3439

Based on 245 responses. Respondents were allowed to choose more than one answer.



Frequently used alternative investment strategies: RIAs

78

44

30

0

17

13




No change in RIA annuity usage following 2008 economic downturnAdvisers at RIAs have not considerably changed application of annuities in retirement plans

.

55

29.7%

18.8%

Increased Do not use




Average rating of annuities products use in retirement plans(1=Never, 5=Always)

1.47Longevity annuities

2.09Immediate annuities

1.69Equity index annuities

Variable annuities

2.09Fixed annuities

0 0.5 1 1.5 2




Rank Name of annuity provider

No. of

advisers % of total1 Jackson National 139 35.46%

2 Prudential 121 30.87%3 Met Life 93 23.72%

4 Lincoln Financial 87 22.19%

5 Allianz Life Distributors 76 19.39%

6 Nationwide 47 11.99%

7 AEGON/Transamerica 42 10.71%

8 SunAmerica/VALIC 37 9.44%

9 AXA Equitable 34 8.67%

10 TIAA‐CREF 21 5.36%

11 MassMutual 20 5.10%

12 Ameriprise Financial 16 4.08%

13 John Hancock 15 3.83%

14 Pacific Life 14 3.57%

15 American Equity 12 3.06%

16 Aviva 11 2.81%

17 Jefferson National 10 2.55%

Top 25 annuity providers used by advisers in retirement plans

18 Hartford 9 2.30%

18 ING 9 2.30%

18 Sun Life 9 2.30%

21 North American 7 1.79%

22 Fidelity 6 1.53%

22 Ohio National 6 1.53%

22 Vanguard 6 1.53%

25 Integrity 5 1.28%

Figures are based on 392 responses to this question. In case of tie, firms are

listed alphabetically under the same ranking number.

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Creating retirement income strategies for your clients