Variable annuity trends

Part 3: A tool for income planning—and principal protection

Retirement income planning was the most commonly cited objective for the use of variable annuities in client portfolios.

Sponsored by Brighthouse Financial

Retirement income planning was the most commonly cited objective (71%, including often and always) for the use of variable annuities in client portfolios. Among all advisors, the second and third most commonly cited objectives were generating tax-deferred growth (58%) and protecting a client’s principal (49%). As expected, advisors who use these products less often were less likely to cite any of the objectives, but the relative order (retirement income, tax-deferred growth and principal protection) was consistent across all advisors.

Advisors who use these annuities more frequently, however, were more likely to cite principal protection than the tax-deferred growth benefits. This finding suggests that advisors who actually use these products do so primarily for retirement income planning and principal protection.

 

 

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