Financial professionals say that clients are prioritizing retirement income and asset protection more than growth, according to a new research brief by the Insured Retirement Institute (IRI). The study sheds light on the evolving relationship between advisors and their clients.

“The implications of these findings are far-reaching,” said Frank O’Connor, Vice President of Research at IRI. “Financial advisors who leverage annuities, capable of providing protection against market losses and ensuring long-term income security, are poised to align more effectively with their clients’ evolving needs. As the market landscape evolves, advisors equipped with these insights are better positioned to navigate market disruptions and deliver tailored solutions that resonate with clients.”

The report, “Advisor Views on Client Goals, Concerns, and Preferences,” is based on responses from financial advisors with at least one year of experience and recent annuity sales. It provides a comprehensive overview of clients’ financial goals, concerns, and product preferences.

Other Key Findings

• Investing and Financial Concerns: Advisors reported that clients’ top concerns revolve around inflation, market volatility, and the possibility of a recession. Interestingly, “running out of money” was less prominent, possibly due to the utilization of annuities, which offer protection and a sense of security even during periods of uncertainty.
• Investment Product Feature Preferences: The survey reveals that clients express heightened interest in “downside protection” features and “guaranteed income.” The priority on these aspects suggests that clients are not solely focused on maximizing growth but are equally concerned about safeguarding their investments and securing a reliable income stream.

“These findings reinforce the value annuities can provide to investors and the importance of annuities to financial advisors as a tool that can uniquely address the goals and concerns clients express most frequently,” O’Connor said.

Annuity Alliance is not affiliated with the IRI. This article is for informational and educational purposes only. It should not be used to make a buying decision. If you would like to speak with a financial professional, please use Annuity Alliance’s contact form.