Part 2: The Average VA Client

Part 2: The Average VA Client

The average variable annuity holder is 56 years old with a net worth of $1.9 million, and variable annuities account for 13% of his or her assets.

The average variable annuity holder is 56 years old with a net worth of $1.9 million, and variable annuities account for 13% of his or her assets. The averages can be misleading, however. Two-thirds (66%) of clients with variable annuities have less than $1 million in assets; a small number of very high-net-worth clients skew the average.

More than half (54%) of advisors say the average age of clients to whom they recommend variable annuities is between 50 and 59. Yet a subset of advisors targets younger clients more heavily. This subset of advisors self-reported as “Other” when asked what type of firm they worked for, specifying a variety of firm types including an insurance brokerage and a financial technology company. An estate planning attorney with more than 25 years of experience explained that the growth potential of variable annuities is less appealing to his older clients. “Most of my clients are in their later years and they are more concerned with income rather than growth,” he says.

Click to Enlarge

Next Part 3 of 4: When Clients Push Back

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish