Annuities? Helping Clients See the Long-Term Benefits

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By Laurence Greenberg

Read any industry publication and you’ll see that the buzz is about retirement income solutions. The choices include variable annuities (VAs) offering a range of different living benefits, target date mutual funds, and payout mutual funds, all designed to generate income during retirement years.

But with all the hype, one statistic has been overlooked: The median baby boomer is 54 years old, and the youngest boomer is in their mid-40’s. With ten to twenty more years until retirement, accumulation is still a big issue for more than half of the 76 million boomers, as well as the younger generations following them. In this era of do-it-yourself planning and a failing retirement safety net, experts agree that most Americans need to save more. But many consumers have a big objection to annuities—simply stated, they’re hesitant to tie up today’s savings for tomorrow’s income. So how can you help them overcome this block to see the benefits of annuities?