Friday, August 23, 2013
According to research by MetLife, only one in ten financial advisors would use their retirement fund to buy a traditional or enhanced lifetime annuity. The managing director at MetLife, Dominic Grinstead, stated, “There is strong demand and growing interest in alternatives to conventional annuities and innovation is crucial in driving expansion in the retirement income solutions market.”
Because the future yields and annuity rates are both uncertain and low, the majority of advisors would not risk putting their retirement in lifetime annuities. About 16% claim they would wait before making a decision in the current economy and 21% would rather use drawdown, unit like guarantees, and fixed term annuities.
See Gill Montia Just One in 10 Financial Advisors Would Buy a Lifetime Annuity, Banking Times, Aug. 13, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.