Help your clients remove the fear of Running out of Income.

Help secure your clients' retirement by identifying their income gaps and positioning annuities as a reliable solution for financial security and guaranteed lifetime income.

Understanding income planning

Income planning in retirement is about ensuring a steady stream of funds to cover expenses throughout one's post-working life. Many individuals lack a clear strategy beyond relying on Social Security or volatile, market-dependent assets. This often leads to anxiety about outliving savings. Annuities, as discussed, offer a unique solution by providing a contractual guarantee of income, alleviating this fear and enabling a more confident and enjoyable retirement.

The versatile value of annuities

●        Guaranteed lifetime income: Annuities are unique in their ability to provide a contractual guarantee of income for life, addressing the primary fear of outliving savings.

●        Market recovery tool: Annuities can help clients retain gains and avoid further losses, especially in volatile markets, often by offering bonuses that can help "make up" for past market dips for income purposes.

●        Flexibility and access: While annuities are long-term products, many offer features like penalty-free withdrawals (e.g., 10% annually) and provisions for life-changing events (e.g., terminal illness, nursing home riders), providing access to funds when needed.

The opportunity

Many pre-retirees and retirees are in a "DIY" phase, often without adequate guidance on converting assets into reliable income streams, creating an opportunity for you to address the widespread consumer need for guaranteed income in retirement. For example, many individuals rely heavily on Social Security and 401(k)s, often overlooking the importance of the distribution phase and the need for guaranteed income. The market's volatility further amplifies the need for stable income solutions, as the fear of outliving savings is a key motivator for clients to consider annuities, making annuities a timely and relevant offering. Annuities can provide a sense of security, allowing clients to enjoy their retirement without constant worry about market fluctuations.

Communicate with clients to truly understand their fears of running out of money and the limitations of traditional retirement vehicles, positioning yourself as a helpful guide and resource. Be prepared to explain the "laws of large numbers" and show contract guarantees to address client skepticism.

Checklist for success

●        Identify income gaps: Assess a client's current and projected income sources versus their anticipated expenses to pinpoint shortfalls. Many individuals face a shortfall between their guaranteed income sources (like Social Security or pensions) and their desired retirement expenses. Annuities can precisely fill this gap.

●        Educate on annuity benefits: Clearly articulate how annuities provide guaranteed lifetime income and protect against market volatility.

●        Address concerns about access: Explain penalty-free withdrawal options and riders for unexpected life events.

●        Demonstrate value with examples: Use "Johnny Stories" or similar real-life scenarios to illustrate how annuities have helped others.

●        Affirm understanding: Confirm that clients understand they are purchasing an annuity and its contractual guarantees.

●        Select the right carrier: Remember that choosing an annuity carrier involves evaluating the best payout, associated costs, reputation for service, and financial strength ratings.

Pro tips in action

When working with clients, start by asking open-ended questions about their retirement income goals and fears. Use simple, relatable analogies (like refrigerator diversification) to explain complex concepts. When presenting annuity options, focus on how they solve specific client needs, whether it's bridging an income gap, recovering from market losses, or simply gaining peace of mind. Continuously reinforce the contractual guarantees and accessibility features to build trust and confidence.