Do Financial Professionals Recommend Annuities?
December 27, 2023 by Karolos Arapakis and Gal Wettstein
The rate of ownership of annuities in the United States is low, with only about 10 percent of older Americans having a commercial annuity. Researchers have offered many potential rationales as to why people approaching retirement have so little interest in annuities. However, a largely overlooked issue is how financial professionals view annuities and how their recommendations may affect the purchase of annuities among their clients.
Click HERE to read the full findings at Center for Retirement Research at Boston College
Wink’s Moore on the Market: This article suggest that 10% of older Americans have an annuity. I earnestly thought it was less than that.
“The findings suggest that most financial professionals are aware that some of their clients may outlive their resources. Nevertheless, the vast majority of professionals rarely recommend buying an annuity.”
Now, why do you think that is?
“…more than a third (of respondents) were not familiar with lifetime income products” in this study. That sounds about right.
“Among those who do [recommend an annuity], many report that their clients do not follow their recommendation.”
I wonder what is driving that? – sjm
