Why 'mailbox money' is crucial to retirement

Aging baby boomers represent a historic opportunity to boost the sales of income-generating investment products, according to industry leaders who kicked off the Insured Retirement Institute conference in Boston last Monday
OCT 18, 2011
Aging baby boomers represent a historic opportunity to boost the sales of income-generating investment products, according to industry leaders who kicked off the Insured Retirement Institute conference in Boston last Monday. Tapping that market requires that investment advisers embrace variable annuities as an important asset in their clients' portfolios. Overcoming traditional financial adviser resistance to the products is at the top of the agenda of the organization, which represents major insurers, asset managers and broker-dealers, and comprises about 500 companies and 80,000 advisers. “Ensuring that these advisers have the tools, the information, the resources ... to help investors create a holistic retirement plan will be a top priority for me, the board, this association,” Lynne Ford, chief executive of ING Individual Retirement and the new IRI chairwoman, told the audience. “Financial advisers represent a vital piece of the overall puzzle of how we meet the historic demand for retirement income security.” IRI leaders released a poll conducted by Cogent Research LLC on behalf of the organization, showing that 60% of advisers said that the number of clients who have variable annuities in their portfolios has increased over the past five years. The survey also illustrated increasing concern about funding golden years that have become significantly longer as age expectancy climbs; 49% of investors “indicate their top financial goal in retirement is not to run out of money,” according to a Cogent statement. The survey involved 370 advisers and 300 investors interviewed in August and September. “The market is ripe for our products,” Cathy Weatherford, IRI president and chief executive, said in a speech. “I call it mailbox money.” One of the most promising avenues to boost usage of variable annuities is to make them part of rollovers for qualified employer-sponsored retirement plans, Ms. Weatherford said. Industry leaders, however, acknowledged that there is still much work to be done to increase acceptance of annuities, which are criticized for their cost and complexity. Investors often fear losing access to the money that they sink into such products. Email Mark Schoeff Jr. at [email protected]

Latest News

Why more Americans are raiding their retirement savings for emergencies
Why more Americans are raiding their retirement savings for emergencies

New Vanguard and FINRA data show Americans increasingly vulnerable to financial shocks, with hardship withdrawals and cash-outs reaching a new high.

Retirement plans in flux: Why more Americans are reconsidering their exit timeline
Retirement plans in flux: Why more Americans are reconsidering their exit timeline

Many people have already continued working past their planned retirement date

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.