Some surprising news about annuities for a younger generation.
It’s Annuities Awareness Month. Your clients might not know that. And they might not know this either — the average variable annuity investor beats the market and their average mutual fund counterparts.1
VA equity investors beat the market and their mutual fund counterparts
Dalbar study shows the difference investor behavior makes.
Dalbar, 'Dalbar Study Shows Annuities Improve Investor Behavior,' May 25, 2021. dalbar.com/News/PressReleases
Why? Because annuities improve investor behavior, according to a recent Dalbar study.2
While this is good news for anyone who has variable annuities as part of their portfolio, it could be especially good for millennial investors. Today, 70% of pre-retirees are concerned about running out of money.3 So by combining an early start to investing with findings that annuity investors are more likely to adopt a long-term buy-and-hold approach, they may increase their potential to retire more comfortably. But there is one major obstacle.
Myths, misinformation and missed opportunities.
There’s often a perception among millennials that annuities are only for folks in or near retirement. People focused on income more than growth. And if they’ve searched online, they may have found not-so-helpful or even inaccurate information about annuities.
These younger investors may have formed an opinion that’s based on misinterpretations of how annuities work or why to include them in a portfolio. That’s why it’s so important for you to simplify the conversation and help them understand the benefits of tax-advantaged investing with annuities.
From awareness to action
Right now, 41% of Americans — especially Gen X and millennials — would be willing to convert some assets into a guaranteed lifetime income stream.4 And with the study showing that annuity investors outperform mutual fund investors – you have a pretty good conversation starter. So here’s to a happy Annuities Awareness Month and new opportunities!
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About the author
Adam Lalla is the Vice President of Competitive Market Solutions with Lincoln Financial Distributors. Adam has over 24 years of experience in the financial services industry. The first 10 years of his career were as a financial professional in agency, bank, and independent platforms. Adam has over 14 years in the annuity industry, which includes over four years as a business development specialist and nearly eight years in competitive intelligence. Adam’s primary role in competitive intelligence is to help wholesalers and financial professionals better understand the competitive landscape and educate them on the value annuities can bring to consumers and financial professionals.
Adam received his MBA from Quinnipiac University in 2017 and holds Certified Financial Planner and Chartered Life Underwriter designations.