Wayne, Pa. — The Diversified Services Group Inc. (DSG) has completed its 2008 Retirement Income Products and Solutions Study.

The study cautions insurers that the mutual fund industry is rapidly developing its own set of solutions to capture the burgeoning retirement market. Other selected findings from the study include:

  • An increasing number of guaranteed lifetime benefit (GLB) owners are now using these benefits to receive an income stream via withdrawals or, to a lesser extent, annuitization.
  • Many companies are beginning to address the healthcare risk for retirees and soon will be introducing new versions of annuities and life insurance with long term care riders.
  • The insurance industry intends to compete with an ongoing array of product solutions, while the mutual fund industry will focus more on an advice first approach to the retirement income market.
  • Companies are beginning to show progress in addressing the middle market using more simplified solutions and efficient delivery mechanisms.

"Guaranteed lifetime benefit annuities are under serious challenge as the major product solution for producing a stream of income over a retiree's lifetime,” says James Sholder, a principal in DSG's retirement practice. “The mutual fund industry is quickly developing its own set of solutions to address longevity and the other primary retirement risks.”
The 136-page report, the 9th annual, includes the findings from two separate, but complementary research efforts: a survey of more than 40 providers of retirement income products and solutions, and a series of 17 in-depth interviews with selected senior executives who focus on the retirement income market.

Source: Diversified Services Group Inc.

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