The Alliance for Lifetime Income has invested in research to understand how people think, feel and make decisions about retirement planning. With the current market volatility, financial professionals are getting many concerned calls from clients. We thought it would be helpful to share our research insights with financial professionals to help address people’s emotional anxieties at this emotional time.
Now is NOT the time to deviate from a strong financial plan, particularly one that includes sources of protected lifetime income to cover essential expenses. These insights can help financial professionals navigate people’s concerns and reassure them – so they don’t make mistakes that can jeopardize the life they PLAN TO LIVE.
Consumer research insights
Most clients want to know how the current volatility changes their hopes and desires, NOT the history of the market or complicated product performance data.
Remind them of the SMART and RESPONSIBLE decisions they have made with their money for situations just like this. Together, you’ve built a plan. That plan is meant to help reach their goals in retirement. The current volatility doesn’t change that.
If you know their goals, talk about them. If you don’t, our research shows that close to 71% of people will be happy if they can live what we call a FULL LIFE in retirement. That means that as they grow older, they are secure, inde- pendent, and free to live as they choose.
Right now, people want reassurance that they are prepared for adversity, and still remain in control of their finan es. Remind them of the SAFE and SECURE protected income streams that the market cannot affect. If anything, it is now more important than ever to remain smart and responsible.
Demonstrate that you have covered their M.U.G. The acronym represents essential monthly expenses people often need to cover in retirement, like a mortgage or medical expenses, utilities, groceries, gym fees or car payments. If you can calculate their monthly M.U.G. and show that it is covered by social security and other protected income streams like an annuity, you will demonstrate the safety and security they desire.
The final point from our research is to reassure your clients that they can maintain their lifestyle. They should still feel OPTIMISTIC and PROUD about the decisions they have made and the future in front of them.
In review, what you need to communicate to your clients is:
- You’ve made smart and responsible decisions with your money.
- Together, we’ve built a plan.
- That plan is meant to help you reach your goals in retirement.
- The current volatility doesn’t change that.
- If we stick to the plan, you can still live the full life you want as you grow older.
- We’ve provided security through protected income streams to cover your essential expenses. This offers protection against market fluctuations.
- I remain optimistic and proud about our plan, the decisions you have made and the future in front of you.
- Is there anything else you wanted to discuss today?
Financial professionals can use these insights to help clients avoid making decisions that deviate from a strong financia plan and risk their financial future. Some financial professionals may still face client concerns about their plans, particularly plans that don’t cover essential expenses with protected lifetime income – instead relying heavily on probable income. People need to know they are secure before they can be optimistic about the future.
The extent to which Protected Lifetime Income is guaranteed will depend upon the claims-paying ability of the insurer that issues the annuity.
Product guarantees are subject to the claims-paying ability of the issuing insurance company. Annuities are long-term investments designed for retirement purposes. Partial withdrawals reduce the cash value and certain benefits, such as the death benefit amount. Early withdrawals may be subject to withdrawal charges. Earnings, when withdrawn, are subject to federal and/or state income tax, including a 10% tax penalty for withdrawals before age 59½.
Some income guarantees offered with annuities take the form of optional riders and carry charges in addition to the fees and charges associated with annuity products.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Investments in annuity contracts may not be suitable for all investors.
Northern Lights Distributors, LLC, a FINRA/SIPC member, has been retained to facilitate FINRA review of the material in order to meet certain requirements of its business partners. Northern lights Distributors, LLC is not affiliated with The Alliance for Lifetime Income.
Corebridge Financial is a founding member of the Board of Directors for the Alliance for Lifetime Income.