News | 09.16.20
Surprise? SECURE Act Drives Interest in Retirement Plan Annuities
Following passage of the SECURE Act, nearly two-thirds of advisors and financial professionals (64 percent) say they are likely to adopt in-plan guarantees within clients’ defined contribution plans, according to the Advisor Authority study from the Nationwide Retirement Institute. More than one-third of advisors and financial professionals currently use in-plan guarantees to protect clients against outliving savings. When asked for which net worth segment of clients they are most likely to recommend in-plan guarantees, advisors and financial professionals say Emerging High Net Worth clients ($500,000 to less than $1 million in investable assets). While potential adoption is lower among the overall population of investors, with only 43 percent likely to incorporate in-plan guarantees within their defined contribution plans and nearly one quarter (22 percent) saying they do not know, investors who are ages 55 and younger are far more likely to adopt in-plan guarantees as a result of the SECURE Act. In fact, two-thirds of both Millennial investors and Gen X investors are likely to incorporate in-plan guarantees within their defined contribution plans, compared to only 28 percent of Boomer investors.
Read the full article on 401(k) Specialist.