“Advisors and the Delivery of Retirement Income Support - 2019” is the latest in a series of in-depth reports on retirement income published by Practical Perspectives. This new 101-page report focuses on how the delivery of retirement income is changing given the dynamic marketplace and the different ways advisors serve retirement income clients. It reviews key challenges that advisors encounter in working with retirement income clients and provides ideas on how these obstacles can be overcome. The report leverages insights from past studies to examine the processes, products, and philosophies favored by advisors, their major concerns and needs, and the type of support they require in building a successful, thriving retirement income practice. The report shares meaningful and actionable insights regarding advisor attitudes and behaviors. These insights can help drive strategies and tactics for firms including annuity providers, asset managers, broker dealers, custodians, technology providers, and other organizations reliant on advisors for distributing products and services. The report is based on proprietary research fielded in May 2019 with input from over 700 broker dealer advisors and RIAs. Findings are broken out for the entire sample as well as for key channels – Full Service BDs, Independent BDs, and independent RIAs.
Topic Areas – Advisors and the Delivery of Retirement Income Support
How Advisors Deliver Retirement Income Support
· How developed are advisor processes/capabilities to serve retirement income clients and which sources do they rely on most?
· In what specific role do advisors perceive they have greatest impact on retirement income clients?
· What types of support do advisors most often provide to retirement income clients?
· Which investment solutions and annuity/insurance products do advisors rely on most in serving retirement income clients?
How do advisors expect the delivery of retirement income support will change in the next 12 months?
· What sources of technology or software do advisors rely on for support in working with retirement income clients?
· What specific sources offer the most useful support to advisors in serving retirement income clients?
Key Needs and Challenges in Working with Retirement Income Clients
· To what extent do retirement income-related relationships comprise the overall assets and clients served by advisors and how is this changing?
· What specific approach to delivering retirement income is most commonly used by advisors?
· How challenging is it for advisors to serve retirement income clients including newer clients and Baby Boomers?
· What are the key investment, practice management, and client engagement challenges advisors encounter in serving retirement income clients?
· What topics for additional support related to investments, practice management, and engaging with retirement income clients are of most importance to advisors?
· What changes would improve the usefulness of support to advisors working with retirement income clients and what are advisors greatest need for additional capabilities?
Ordering the Report
The study is available in PDF format for the subscription price of $5,350 and includes a presentation of key findings and implications. To order the complete 101-page, 61 exhibit report or for more information, please contact:
Howard Schneider at 978-590-7290
or email: howard.schneider@practicalperspectives.com
Introduction and Methodology
“Advisors and the Delivery of Retirement Income Support - 2019” is the latest in a series of in-depth reports on retirement income published by Practical Perspectives. Since early 2008, we have conducted ongoing research and analysis of advisor practices in retirement income delivery. Retirement income support is a core offering of virtually every financial advisor and cuts across all types of intermediaries including wirehouse, regional, independent, and RIA. Investors want to maintain their lifestyles as they grow older and look to advisors for guidance, tailored assistance, and breadth of capabilities to help them achieve their vision of retirement. Our ongoing analysis offers a fact-based examination of retirement income delivery and the ways support is changing as this discipline evolves. This report is designed and written to provide relevant information for key parties that have a stake in retirement income support. These include annuity providers, asset managers, broker dealers, custodians, technology providers, and other organizations reliant on advisors for distributing products and services.
Our new report focuses on how delivery of retirement income is changing given the dynamic marketplace and the different ways advisors work with retirement income clients. It reviews key challenges that advisors face in support and provides perspectives on how these obstacles can be resolved. The report leverages insights from past studies to examine the processes, products, and philosophies favored by advisors, their major concerns and needs, and the type of support they require in building a successful, thriving retirement income practice. Our aim is to share meaningful and actionable insights regarding advisor attitudes and behaviors. These insights can help drive strategies and tactics for firms focused on building retirement income business through financial practitioners.
Among the key questions addressed in this report are:
· How much of a priority are retirement income clients and what share of current and new business do these clients represent?
· How well developed are advisor processes and capabilities to serve retirement income clients?
· What types of support do advisors most often provide to retirement income clients and in what role do advisors perceive they have the greatest impact?
· What approach do advisors typically use for clients who need retirement income?
· Which investment solutions or strategies do advisors rely on most to generate income for clients?
· Which types of annuity and insurance solutions do advisors rely on most when serving retirement income clients?
· How do advisors expect their delivery of retirement income support may change in the next 12 months?
· What sources do advisors rely on for support in serving retirement income clients and how useful is that support?
· What sources of technology or software do advisors rely on most in working with retirement income clients?
· How satisfied are advisors with the technology, tools, and infrastructure available to support retirement income clients?
· Which specific firms or sources offer the most useful support for retirement income?
· What are the most significant investment, engagement, and practice management challenges in serving retirement income clients and what subjects are most important for advisors to receive additional support in the coming year?
· To what extent do advisors need additional resources and capabilities from key sources to help in serving retirement income clients and what are the most important areas for additional support?
· What changes would improve the usefulness of support related to working with retirement income clients?
This report is based on proprietary input gathered from a broad cross-section of advisors working with retail clients. In May 2019, advisors were asked to participate in an on-line survey regarding retirement income delivery. Advisors were randomly solicited across all delivery channels and include practitioners from wirehouse, regional, independent broker dealer, and RIA firms. Overall, more than 700 advisors responded to the survey. Advisors did not receive any compensation for participation in the survey.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: The Delivery of Retirement Income Support
A. How much of a priority is it for advisors to serve retirement income clients?
B. How significant a share of existing and new business for advisors are retirement income clients?
C. To what extent do advisors specialize in retirement income support?
D. How well developed are advisors’ processes and capabilities to serve retirement income clients?
E. What types of support do advisors most often provide to retirement income clients?
F. In what specific role do advisors perceive they have greatest impact on retirement income clients?
G. What approach do advisors prefer to use for generating income or cash flow for retired clients?
H. Which investment solutions or strategies do advisors rely on most to generate distributions or cash flow for retirement income clients?
I. Which types of annuity and insurance solutions do advisors rely on most to generate distributions or cash flow for retirement income clients?
J. How do advisors expect their delivery of retirement income support may change in the next 12 months?
K. What sources do advisors rely on for support in serving retirement income clients and how useful is this support?
L. What sources of technology or software do advisors rely on most for support in serving retirement income clients?
M. What resources do advisors rely on most when working with retirement income clients?
N. How satisfied are advisors with the solutions, technology, and other support available to serve retirement income clients?
O. What specific sources offer the most useful support for working with retirement income clients?
Section IV: Working with Retirement Income Clients – Key Challenges and Needs
A. How challenging is it for advisors to serve retirement income clients?
B. What investment-related challenges are most significant in serving retirement income clients?
C. What topics related to investing for retirement income clients are most important for advisors to receive additional support?
D. What are the most significant challenges to engaging with retirement income clients?
E. What topics related to engaging with retirement income clients are most important for advisors to receive additional support?
F. What are the most significant practice management challenges to serve retirement income clients?
G. What topics related to practice management in serving retirement income clients are most important for advisors to receive additional support?
H. To what extent do advisors need additional resources and capabilities from key sources to help serve retirement income clients?
I. What are the most important areas for additional support or capabilities to serve retirement income clients?
J. What changes would improve the usefulness of support advisors receive related to serving retirement income clients?
K. In their own words, what are advisors greatest needs for additional assistance in working with retirement income clients?
Section V: Characteristics of Respondents
Section VI: Outlook and Implications
List of Exhibits
Exhibit 1: Priority of Advisors to Serve Retirement Income Clients
Exhibit 2: Priority of Advisors to Serve Retirement Income Clients by Channel
Exhibit 3: Percent of Total Existing and New Assets and Clients Advisors Consider Retirement Income Related
Exhibit 4: Retirement Income Clients as Percent of Total Clients Served by Channel
Exhibit 5: Retirement Income Assets as Percent of Total Assets Managed by Channel
Exhibit 6: Retirement Income Clients as Percent of Net New Clients Served by Channel
Exhibit 7: Retirement Income Assets as Percent of Net New Assets Managed by Channel
Exhibit 8: Positioning of Practice to Serve Retirement Income Clients
Exhibit 9: Positioning of Practice to Serve Retirement Income Clients by Channel
Exhibit 10: Processes to Serve Retirement Income Clients
Exhibit 11: Processes to Serve Retirement Income Clients by Channel
Exhibit 12: Types of Support Provided to Retirement Income Clients
Exhibit 13: Types of Support Provided to Retirement Income Clients by Channel
Exhibit 14: Most Impactful Role of the Advisor in Working with Retirement Income Clients
Exhibit 15: Most Impactful Role of the Advisor in Working with Retirement Income Clients by Channel
Exhibit 16: Philosophy Used by Advisors to Generate Income or Cash Flow for Retirement Clients
Exhibit 17: Philosophy Used by Advisors to Generate Income or Cash Flow for Retirement Clients by Channel
Exhibit 18: Investments Used to Generate Distributions for Retirement Income Clients
Exhibit 19: Investments Used to Generate Distributions for Retirement Income Clients by Channel
Exhibit 20: Investments Frequently Relied on to Generate Distributions for Retirement Income Clients by Channel
Exhibit 21: Annuity and Insurance Solutions Used to Generate Distributions for Retirement Income Clients
Exhibit 22: Annuity and Insurance Solutions Used to Generate Distributions for Retirement Income Clients by Channel
Exhibit 23: Annuity and Insurance Solutions Frequently Relied on to Generate Distributions for Retirement Income Clients by Channel
Exhibit 24: Expected Changes to Delivery of Retirement Income Support in Next 12 Months
Exhibit 25: Significant Changes to Delivery of Retirement Income Support Expected in Next 12 Months by Channel
Exhibit 26: Sources Advisors Rely on for Support in Working with Retirement Income Clients
Exhibit 27: Sources Advisors Rely on for Support in Working with Retirement Income Clients by Channel
Exhibit 28: Sources Advisors Frequently Rely on for Support in Working with Retirement Income Clients
Exhibit 29: Usefulness of Support from Sources Advisors Rely on in Working with Retirement Income Clients
Exhibit 30: Very Useful Support from Sources Advisors Rely on in Working with Retirement Income Clients by Channel
Exhibit 31: Sources Relied on for Technology or Software in Working with Retirement Income Clients
Exhibit 32: Sources Relied on for Technology or Software in Working with Retirement Income Clients by Channel
Exhibit 33: Resources Advisors Rely on Most in Serving Retirement Income Clients
Exhibit 34: Resources Advisors Rely on Most in Serving Retirement Income Clients by Channel
Exhibit 35: Satisfaction with Resources Available to Advisors in Serving Retirement Income Clients
Exhibit 36: Very Satisfied with Resources Available to Advisors in Serving Retirement Income Clients by Channel
Exhibit 37: Providers of Most Useful Support Related to Working with Retirement Income Clients
Exhibit 38: Providers of Most Useful Support Related to Working with Retirement Income Clients by Channel
Exhibit 39: Extent Serving Retirement Income Clients is a Challenge
Exhibit 40: Extent Serving New Retirement Income Clients is a Challenge by Channel
Exhibit 41: Extent Serving Existing Retirement Income Clients is a Challenge by Channel
Exhibit 42: Extent Serving Baby Boomer Retirement Income Clients is a Challenge by Channel
Exhibit 43: Investment-Related Challenges in Serving Retirement Income Clients
Exhibit 44: Investment-Related Challenges in Serving Retirement Income Clients by Channel
Exhibit 45: Investment-Related Topics for Additional Support in Next 12 Months to Serve Retirement Income Clients
Exhibit 46: Investment-Related Topics for Additional Support in Next 12 Months to Serve Retirement Income Clients by Channel
Exhibit 47: Most Significant Challenges to Engaging with Retirement Income Clients
Exhibit 48: Most Significant Challenges to Engaging with Retirement Income Clients by Channel
Exhibit 49: Key Topics for Additional Support in Next 12 Months Related to Engaging with Retirement Income Clients
Exhibit 50: Key Topics for Additional Support in Next 12 Months Related to Engaging with Retirement Income Clients by Channel
Exhibit 51: Most Significant Practice Management Challenges in Serving Retirement Income Clients
Exhibit 52: Most Significant Practice Management Challenges in Serving Retirement Income Clients by Channel
Exhibit 53: Most Important Topics for Additional Practice Management Support in Next 12 Months for Serving Retirement Income Clients
Exhibit 54: Most Important Topics for Additional Practice Management Support in Next 12 Months for Serving Retirement Income Clients by Channel
Exhibit 55: Extent Advisors Need Additional Support from Key Sources Related to Serving Retirement Income Clients
Exhibit 56: Extent Advisors Have Significant Need for Additional Support from Key Sources Related to Serving Retirement Income Clients by Channel
Exhibit 57: Most Important Elements of Additional Support in Serving Retirement Income Clients
Exhibit 58: Most Important Elements of Additional Support in Serving Retirement Income Clients by Channel
Exhibit 59: Changes to Improve Usefulness of Support to Retirement Income Clients
Exhibit 60: Changes to Improve Usefulness of Support to Retirement Income Clients by Channel
Exhibit 61: Profile of Respondents by Key Characteristics
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