A Simple Idea for Increasing Annuity Sales
December 26, 2017 by Kerry Pecther
If you’re a financial advisor struggling to describe the value of a lifetime income product to retirees, you might first try explaining how hard it is for anyone to arrive at an optimal spending rate in retirement so that they don’t run out of money before they die or die before enjoying enough of their money.
Then you can say that an annuity might solve that problem.
That’s one takeaway from a scholarly but practical new article from a notable group of retirement researchers. Published this month by the National Bureau of Economic Research, the work was underwritten by the TIIA Institute, perhaps for application by TIAA’s own advisors. Anyone selling annuities could take a lesson from it.