The lingering distrust surrounding financial instruments presents a challenge to life insurers looking to market retirement products, a new study finds.
A report released by the Insured Retirement Institute (IRI) says consumers are beginning to seek more interaction with financial advisers, but remain skeptical of any financial advice and information they receive. Thankfully for insurers, the survey found retirees and pre-retirees have become much less aggressive investors and are seeking more conservative, long-term investments such as annuities. Yet, however warm investors are to the guarantees annuities provide, they remain skeptical of annuities themselves and want to know the “catch.”
“Our study found that the financial crisis has left a lasting, long-term impact on investors, especially those who are in or nearing retirement,” IRI President and CEO Cathy Weatherford said in a statement. “For many, years of retirement savings took a dramatic hit and caused them to lose much of what they were relying upon to provide retirement income. Through increased education and awareness, guaranteed lifetime income strategies are poised to play an important role in any balanced portfolio, offering consumers the financial security they desire.”
The report was based on questions answered by a panel of 24 retirees and pre-retirees from the Chicago area during IRI’s 2010 Annual Meeting in Chicago. The participants used hand-held dials to provide instant, moment-by-moment responses to videotaped messages regarding investment and income-generating options.
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Corrected December 23, 2010 at 10:12AM: yes