A growing number of financial advisors are focused on protecting clients from outliving their assets
, according to a new survey by the Life Insurance and Market Research Association (LIMRA).
The survey found that 56 percent of advisors favor the benefits of guaranteed income products
over those of non-guaranteed income solution benefits, up from 42 percent in 2009.
When asked to name the most valuable service they provide, the majority of advisors listed protecting clients from running out of money during retirement, the survey found.
Nearly 60 percent of advisors surveyed said they believe that outliving their assets is the greatest risk faced by clients today.
“This is particularly true for less affluent households, who often must rely on their personal savings to generate retirement income
and do not have enough assets to self-insure against longevity risk,” said Matthew Drinkwater, an associate managing director with LIMRA.
The increased acceptance of guaranteed income solutions by advisors is largely due to improved communication by insurers, according to LIMRA.