DALBAR Study Shows Annuities Improve Investor Behavior
June 1, 2021 by Dalbar
MARLBOROUGH, Mass., May 25, 2021 /PRNewswire/ — DALBAR, Inc., the nation’s leading researcher on investor behavior, recently found that variable annuity subaccount investors exhibit less destructive behavioral tendencies and have consistently earned more money than the average investor.
The study examined the cash flows and balances of over $1.5 trillion in variable annuity assets over a 20-year span to arrive at its conclusion; variable annuity subaccount investors stay in their investments longer and experience higher returns as a result. DALBAR used average investor data it has been computing for the industry since 1994 as the basis of its comparison.
“Financial professionals who dismiss annuities as a viable alternative due to cost differences may not be acting in an investor’s best interest,” said Cory Clark, Chief Marketing Officer at DALBAR, Inc. “While costs are important, they are just one piece of the pie; and what we’re learning is that the other pieces of that pie are bigger than one may think. When we quantify the difference that behavior makes in the long-term results of investors, it’s clearly the single most important variable.”
DALBAR will be hosting a complimentary webinar on Wednesday, June 2, 2021, to summarize the study, provide details on the results and field questions. The Report, entitled, “Quantitative Analysis of Investor Behavior – Variable Annuities” (QAIB-VA) is available from DALBAR by visiting the QAIB Store at www.QAIB.com, calling 617-723-6400 or emailing QAIB@dalbar.com.
DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of a superior standard of care in the financial community.
SOURCE DALBAR, Inc.