Survey Shows Annuity Usage by RIAs is Growing
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A recent survey showed that only 28% of Registered Investment Advisors (RIAs) are using annuities for clients near or in retirement. But 68% said they would consider them, foretelling a dramatic increase in the coming years.
Those results were from my firm’s (DPL Financial Partners’) survey of 128 RIAs in late 2020 and early 2021 and are summarized in our 2021 RIA Market Assumptions Survey. The survey was designed to measure advisors’ return assumptions for both equity and fixed income for 2021 and explore how they are attempting to offset the negative impacts of persistently low bond yields on their clients nearing or in retirement.
Most advisors responded that the market is in the midst of a long-term decline in interest rates that has direct implications for their clients’ access to reliable retirement income. Nearly all (88%) of the respondents said they have adjusted financial plans to account for low interest rates.
However, was little consensus on how to offset the shortfall. Strategies advisors cited ran the gamut from increasing savings to taking on greater market risk to allocating to insurance products.