A growing number of financial advisers expect lifetime income products to play a larger role in retirement planning over the next five years, despite persistent challenges around complexity and fees, according to research by Retirement Edge.
Its member survey – carried out during March and April – reveals 60% believe lifetime income products will gain greater traction in the retirement landscape. Yet, product complexity remains the biggest obstacle, cited by 67% of survey respondents as a barrier to client communication and advice.
Beyond complexity, advisers indicated fee structures (33%), platform software issues (27%), and client pushback (20%) as top challenges.
Challenger and Allianz Retire+ emerged as the most recommended providers by Retirement Edge members, while 40% reported using multiple providers. Retirement Edge says its data points to a cautiously optimistic outlook for the sector.
The author’s of the survey report state: “Providers should focus on making it easy for advisers to upskill around key concepts relating to lifetime income products. More general training and education for financial advisers could significantly improve product adoption.
“As the industry evolves, improving transparency and education will be crucial in driving adoption.”
Key findings include:
- 80% of advisers recommend lifetime income products to clients
- 20% do not recommend them
Providers recommended by Retirement Edge members
- Challenger:53%
- Allianz Retire+:40%
- AMP North: 13%
- Generation Life: 13%
- ART: 7%
- 40% of advisers use multiple providers
