Advocates Take Aim at Advisor Annuity Skepticism

According to Statler, as soon as modern annuity solutions are put on a level playing field and are not subject to undue skepticism or misinformation, they become popular. From her point of view, this is indeed happening, and the U.S. retirement advisory industry is better prepared to consider annuities in a factual and fair way.

New Advisor Approaches Boost Annuities

Statler says the proliferation of non-commission-based annuity products has been liberating and exciting for the financial advisor industry. In fact, in the ALI’s experience, advisors must work harder to update their understanding of what is available in the annuity marketplace today — because things have changed so dramatically.

“As we move into 2023, it is gratifying for us to see that it is no longer hard to talk to an investor about protected income,” Statler says. “Where the chokepoint remains is with the advisors, frankly, but we do see a softening there, as well. Their clients are coming to them in droves, wanting to hear about things other than mutual fund investments and accumulation.”

Statler says fee-based fiduciary advisors are in the driver’s seat, with great opportunity for growth in traditional and emerging service areas. However, while they have huge opportunities for success, they also must ensure they are meeting new client expectations and demands. Simply put, the client population is rapidly aging, and the advisor-client conversation in 2023 and beyond must evolve away from pure accumulation.

“Our members tell us they continue to see that annuity wholesalers are calling on the same innovative advisors who are distributing annuities,” Statler notes. “They want and need to see more advisors distributing annuities. Not only do their clients need access to guaranteed income, this presents an opportunity for fiduciary advisors to grow and protect their assets under advisement.”