The vast majority of advisors to defined contribution plans are not recommending in-plan annuities to sponsors, according to new research from LIMRA Secure Retirement Institute.
In the past two years, only 10 percent of the advisors surveyed by LIMRA have recommended an in-plan annuity option for participants.
Overall, only 46 percent of advisors expressed any interest in building guaranteed income products into plan menus. That sentiment changes with so-called mega advisors—those with more than $500 million in DC assets under advisement. In that segment, 83 percent of advisors expressed interest in recommending guaranteed income products, but only about a quarter actually recommended the option.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
