Advisors are Increasingly Recommending Annuities, and for Good Reason


Financial advisors sometimes have a reputation for following the flavor of the week when it comes to the investment products that they recommend to their clients. Often this is an effort to chase positive returns in a low return environment.

If you’ve ever had an advisor suggest taking on more risk, exploring cryptocurrencies, or another unusual step, you’ve probably seen this trend in action.

But if there’s one thing that RIAs almost across the board can agree on it is the value of guaranteed lifetime income. And increasingly that attitude is leading them to recommend and discuss the pros and cons annuity products to their clients.

Survey results: According to a new report from RetireOne and Protective Life Corp., a whopping 90% of advisors say that they “strongly” believe in the value that guaranteed lifetime income offers their clients.

The survey polled 198 financial professionals who are either RIAs or dually registered, hybrid or turnkey asset managers or third-party investment advisors.


For the same reason that guaranteed income makes retirees happy: it’s peace of mind that helps them sleep at night.

Interest is growing: “Today’s insurance solutions are different from the offerings of years past that were shrouded in commissions and high fees, and we believe that the importance of educating advisors on these new advancements has never been greater. Products that are low cost and offer a guaranteed lifetime solution are the way of the future and we are more enthusiastic than ever about enabling fee-only fiduciaries to properly guide their clients into and through retirement they can enjoy.” — David Stone, RetireOne CEO

My take: For too long, advisors have been more hung up on recommending low yield products like certificates of deposit and bonds as a way to generate retirement income instead of annuities. That’s short sighted, and it’s good to see more and more advisors coming around to the upside potential of annuities as a viable way for people to fund their retirement without having to give up on yield potential during their prime earning years. Here we have the best fixed index annuity rates 2021.


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