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Data & Research April 6, 2010
Advisers Revamp Retirement Income Strategies
The overwhelming majority (91%) of surveyed financial advisers said they have made changes to their clients’ retirement portfolios, and many are looking toward guaranteed income products.
Reported by Ellie Behling
The survey, commissioned by MainStay Investments, found that more than half (60%) of surveyed advisers cited too much exposure to equities as a major issue that came to light amid the financial crisis.
Mutual funds remain the investment product of choice to fund client retirement for 85% of advisers, according to the survey. Additionally, more than 60% of advisers said they are now using guaranteed income products, such as annuities, as part of their portfolio strategy to help clients meet retirement income needs. Three-quarters of advisers are providing guaranteed lifetime annuities to at least some of their clients.
As many post-financial-crisis surveys have found, more than half of surveyed advisers said a majority of their clients are delaying retirement. For clients delaying retirement, most are concerned about maintaining their lifestyle. A majority of advisers (61%) indicated that their clients are not concerned with covering basic needs in retirement, but with having to give up luxuries such as traveling and dining out.
The MainStay Retirement Income Advisor Study was conducted online within the U.S. by Harris Interactive between December 8 and 14, among more than 500 financial advisers (91% wirehouse; 9% independent).
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