In a recent study performed by Cerulli Associates, annuities have made a big jump when it comes to how often they are requested from advisors. Cerulli Associates’ study is entitled “Annuities and Insurance 2012: Evaluating Growth Capacity, Flows, and Product Trends.” Samantha Allen of Financial Planning talks about the annuity results in “Advisors Say Annuities are Most Requested Product.” Just last year, annuity products were sixth on the advisors’ list of most requested products. The study takes into account only products that are requested by clients with no prior solicitation from the advisors. This 15% increase year over year is impressive and points to the fact that annuities are one of the best ways to guarantee lifetime income in retirement.
Interestingly, both positive and negative information is to be thanked for the increasing annuity requests to advisors. Four years of media attention has really made people curious about annuities and what benefits they can offer investors. More than 60% of the advisors surveyed by Cerulli said that their clients had requested annuity products this year. The second most requested product was Roth IRAs, with 58.8% of clients requesting information about those products. This significant increase is great for the annuities market, but not everyone is informed about annuities. Close to 35% of households don’t even know what annuity products are, a number that advisors and insurance companies alike are trying to change through marketing and informing the public. The growth in awareness has been great so far; advisors and insurers need to capitalize on the media attention given to annuities and make sure that clients understand their benefits.
Written by Rachel Summit
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