09.12.23
Does Low Knowledge of Annuities Help Explain Low Adoption Among Advisors?
by: David Blanchett
Though adoption of annuities has accelerated in recent years, the products are still not widely utilized by financial advisors today, writes David Blanchett, managing director and head of retirement research for PGIM DC Solutions. The Alliance for Lifetime Income just released its 2023 Protected Retirement Income and Planning Study, which found, among other things, that financial advisors collectively had a relatively high level of self-assessed knowledge about annuities. About 77% of advisors with the highest self-assessed level of annuity knowledge had a positive perception of annuities, compared to 13% of those with relatively low knowledge. With respect to advisors considering annuities in a retirement or financial plan for clients over the age of 45, 54% of advisors with the highest self-assessed level of annuity knowledge consider an annuity always or often, versus only 11% among those with relatively low knowledge. The bottom line is that advisors who admit to not knowing much about annuities are also less likely to view annuities favorably and less likely to recommend them to a client, says Blanchett.
Read the full article on InvestmentNews