The ongoing unpredictability of the market, job security, inflation, and global events may have some of your clients concerned about their financial security in retirement. The idea of guaranteed income options in the form of a risk-control annuity may be the solution — and peace of mind — they’re seeking.
June is Annuity Awareness Month, which provides a great opportunity to have conversations with your clients about how an annuity may fit their retirement strategy and ease apprehension. The fear of running out of money is very real.
Annuities can help provide the security that other investment options may not. However, some clients may not be familiar with how annuities work, might think there’s only one kind, or believe common misconceptions about annuities.
Talking points to start annuity conversations
It’s important to educate your clients about all of their retirement options. They can then make informed and confident decisions about whether or not to include an annuity in their retirement portfolio.
Start with these simple overviews to clarify the types and structures of annuities:
- Fixed annuities are insurance products instead of investment products, so they earn interest instead of returns or gains
- Registered index-linked annuities feature earned interest linked to market performance, up to a cap
- Variable index-linked annuities combine diversification with protection, offering customized, guaranteed limits on loss
- Income annuities offer options for guaranteed lifetime income, which can help ensure that savings last as long as your client lives or through a chosen period of time
Using these conversation starters helps give clients the opportunity to ask questions, seek your guidance as a financial professional, and choose wisely.
You can further encourage objective decision-making by asking clients to complete a simple but insightful values card-sorting exercise to prioritize the principles they hold most dear. Clarifying clients’ core values often serves as an effective starting point for planning strategies — and as a touchstone in times of uncertainty.
Leverage Annuity Awareness Month to give your clients the facts they need about annuities and helps empower them to control financial risk. Click the link below to easily access detailed information about the wide range of available annuity products and their benefits:
