Nearly three in four advisors (73%) do not use deferred income annuities. This percentage is consistent across all advisor groups, although advisors from independent firms are slightly less likely to use deferred income annuities (21%) compared to advisors from other types of firms. Perhaps unsurprisingly, the likelihood of using deferred income annuities aligns somewhat with the use of annuities in general: of those advisors who have 10% or more of their clients’ assets invested in variable annuities, a third (33%) also use deferred income annuities. That’s nearly twice the frequency (18%) of usage among advisors with less than 10% of their clients’ assets invested in variable annuities.Click to Enlarge
Advisors appear more divided in their use of investment-only variable annuities—those without a living benefit. Across all advisors, there is a slight inclination toward annuities with living benefits. This preference is strongest among advisors from large firms who are more likely to use annuities with living benefits (61%). Advisors who use variable annuities more often (10% or more of their clients’ assets are invested in the products) buck the broader trend, and are the only grouping to favor the use of investment-only variable annuities—albeit by a slim 53% to 47% majority.
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