Creating retirement income strategies for your clients
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Transcript of Creating retirement income strategies for your clients
8/6/2019 Creating retirement income strategies for your clients
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Retirement Income Survey
8/6/2019 Creating retirement income strategies for your clients
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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.
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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.
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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
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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.
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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.
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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
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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%
Based on 542 responses to this question.
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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.
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Increase in advisory services As clients near retirement, their need for advisory services increases
Stays the same.
Decrease3.7%
Increase
Based on 587 responses to this question.
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Revenue boost Increased number of services allowed advisers to generate additional forms of revenue
.
28.0%
Yes No
Based on 339 responses to this question.
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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
Based on 241 non‐RIA and 98 RIA responses to this question.
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Asset responsibilityClients approaching retirement ask advisers to supervise more assets
Stays the same.
Decrease6.5%
Increase
Based on 565 responses to this question.
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Asset responsibility: Non RIAs vs. RIAs
Stays the same
34.9%
.
Decrease6.3%
7.0%
Increase
58
Based on 379 non‐RIA and 186 RIA responses to this question.
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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
Based on 545 responses to this question. Respondents were allowed to choose more than one answer.
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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
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Frequently used alternative investment strategies
155
102
126
2
51
52
Based on 374 responses to this question. Respondents were allowed to choose more than one answer.
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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.
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Frequently used alternative investment strategies: RIAs
78
44
30
0
17
13
Based on 129 responses to this question. Respondents were allowed to choose more than one answer.
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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
Based on 276 non‐RIA and 148 RIA responses to this question.
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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
Based on 414 responses to this question.
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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.