{"id":16870,"date":"2019-09-18T00:00:02","date_gmt":"2019-09-18T04:00:02","guid":{"rendered":"https:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/annuities-suffer-from-a-framing-problem-survey-suggests\/"},"modified":"2019-09-18T00:00:02","modified_gmt":"2019-09-18T04:00:02","slug":"annuities-suffer-from-a-framing-problem-survey-suggests","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/09\/18\/annuities-suffer-from-a-framing-problem-survey-suggests\/","title":{"rendered":"Annuities suffer from a framing problem, survey suggests"},"content":{"rendered":"\n
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There\u2019s a divergence between what consumers think of annuities and what their advisors are telling them when it comes to retirement income solutions, according to a survey conducted by Greenwald & Associates and CANNEX.<\/p>\n

The fifth annual Guaranteed Lifetime Income Survey marked the first time researchers drew responses from both advisors and consumers. As reported by InsuranceNewsNet Magazine, participating consumers have a strong interest in guaranteed lifetime income, with two thirds saying they saw high value in having that on top of their government-provided pension.<\/p>\n

Despite holding that view, however, some participants still react negatively at the mention of the word \u201cannuity.\u201d According to the research, 35% of consumers would be less interested in a product offering guaranteed income if it were labelled as an annuity compared to if they were offered an unnamed product with the same benefits.<\/p>\n

The finding suggests that advisors must rely on communication and education to dispel any confusion over annuities, said Cannex Head of Annuity Research Tamiko Toland.<\/p>\n

\u201cI think one of the confusing aspects of these products is that they actually provide a set of different values based on what the client is looking for,\u201d she told the publication. \u201cSometimes they\u2019re sold more as a bond alternative. Sometimes they\u2019re sold purely for income.\u201d<\/p>\n

Toland noted that consumers actually appreciate the features of annuities, but have an ingrained negative reaction to the term \u201cannuity\u201d because of negative information they may have received from peers or the media.<\/p>\n

That view was echoed by study director Doug Kincaid of Greenwald & Associates, who recommended that annuities be framed as a strategy.<\/p>\n

\u201cWhen we talk about it as a product \u2014 especially as an annuity \u2014 you start to see consumers\u2019 interest in it chip away as people get more skittish,\u201d he said.<\/p>\n

According to Kincaid, the researchers guided consumers they polled through a \u201cfloor plan\u201d of determining their retirement expenses, determining how much they could cover through Social Security, and then obtaining a product that provides income to cover the difference. At the end of the exercise, they find that they have money left over to invest or spend as they want.<\/p>\n

\u201cWhat we saw is a large amount of interest from the consumers we surveyed \u2014 71% said that seemed to be a good strategy for them,\u201d Kincaid said. \u201cWhen you\u2019re shown exactly what an annuity does and it gives you this guarantee throughout retirement, all of a sudden consumers are really on board with annuities and interested in what annuities can do for them.\u201d<\/p>\n

Read the original article at https:\/\/www.lifehealthpro.ca\/rss\/ <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a divergence between what consumers think of annuities and what their advisors are telling them when it comes to retirement income solutions, according to a survey conducted by Greenwald & Associates and CANNEX....<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/16870"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=16870"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/16870\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=16870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=16870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=16870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}