04.07.21

Advisors Plan More Annuity Recommendations Amid the Pandemic

by: Emile Hallez

The past year provided some scares for people nearing retirement, and financial advisors are addressing concerns about future income in part with annuities, new data from InvestmentNews Research show. It’s a product category that registered investment advisors shunned for years, but there are good reasons why they are increasingly receptive to annuities. The insurance products have become much more compatible with RIAs’ compensation models, and they can provide some financial security that their clients are seeking, panelists at the InvestmentNews Annuities in 2021 webcast said. Nearly three-quarters of independent financial advisors are planning to recommend annuities to some clients this year, according to the recent InvestmentNews Research survey of 400 advisors. More than half of those who do use annuities in their practices — 58 percent — said they will likely change product recommendations in 2021, while most indicated they will suggest annuities more often than they did in the past, that report found.

Read the full article on InvestmentNews.