While Americans have been focused on increasing education about annuities and retirement income options, our neighbors in Europe are dealing with the same issues. MetLife Europe UK forecasts a 65% increase in retirees asking financial advisors about annuity products. In the FT Advisor article, “IFAs expect rise in advice on annuities: MetLife,” Aamina Zafar says that fixed term annuities like the 5 year fixed annuity will become increasingly popular over the next two years. Retirees and financial advisors are calling for more innovation and new products to help retirees. They believe that better options should be out there to finance retirement.
Unfortunately, 47% of those surveyed did not use a financial advisor’s help when making decisions regarding their retirement income planning. Of those, 17% admitted to regretting that choice, while it’s likely that more actually regretted it. About 27% of retirees sought the advice of a financial advisor for retirement decisions, 21% used their employer’s 401k annuity or other retirement plan, and 9% just asked their family and friends for advice. In order to get retirement income, half of retirees were drawing down their savings and capital rather than receiving income payments from annuities or pensions. No matter what retirement vehicle you use, speak with an expert to help give you all of your options.
Written by Rachel Summit
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