A recent report indicates that the proportion of financial advisers that recommended annuities to clients has continued to increase over the last three years.
The Investment Trends December 2014 Retirement Planners
Report compiled off a survey of 617 financial advisers has shown that almost 60% of financial advisers say they intend to use the annuities in 2015. Furthermore, the number of financial advisers recommending annuities to their clients has increased to 38 per cent in 2014, up from 32 per cent in the previous year.
The report also highlighted an increase in the number of financial advisers using life time annuities with “39 per cent of planners saying they intend to use them in 2015, compared with 31 per cent for long-term annuities (5 years or more) and 21 per cent for short-term annuities (less than 5 years).”
Investment Trends senior analyst Recep Peker said that, “planners continue to see a greater role for annuities as part of their retirement advice and in addition to already increasing usage, the intention to use annuities has also increased with 59% of planners intending to
recommend annuity products in the coming year, up from 45% saying so in the previous study.”
Peker also believes that the increase in recommending annuities is caused by financial advisers, “responding to client concerns such as longevity risk“ and said that, “healthy client interest will continue to buoy planner appetite for annuities in the current low interest environment.”