Why Annuities Deserve a Second Look
Why Independent Financial Advisors Are Giving Annuities a Second Look
June is Annuity Awareness Month, a timely reminder about the value of these versatile products. Annuities have evolved—and for independent financial advisors looking to enhance retirement income strategies, they may deserve a fresh look.
If it’s been a few years since you last evaluated the annuity landscape, now’s the ideal time to revisit this space with fresh eyes. The market has evolved—and so have the planning opportunities.
At Visio Wealth Partners, our annuity team can help you access a broader, more competitive suite of annuity products and planning tools. That flexibility helps you tailor solutions to meet the unique needs of your clients, without being boxed into a one-size-fits-all approach.
What’s Changed with Annuities
Today’s annuities offer a lot more. Fee-based options have reduced or eliminated commissions, income riders are more flexible, and index-linked products now offer downside protection without sacrificing all growth potential. All this can help make annuities a strategic component of a client’s income plan, especially for clients nearing or in retirement.
Annuities have also become less about “selling a solution” and more about solving a problem. Difficulties clients typically face include increasing pressure to make their savings last through unpredictable markets, longer life spans, and rising healthcare costs.
Thanks to Visio’s annuity team, you’re not limited to just a handful of carriers or basic product types. You can confidently explore a wide range of annuity options and design plans that reflect your clients’ goals.
3 Reasons Financial Advisors Are Revisiting Annuities
Top 3 Reasons to Consider Annuities in Client Portfolios:
- Reliable income clients can’t outlive
- Protection against sequence of returns risk
- Greater planning flexibility, especially with fee-based annuities
Let’s break down the top reasons advisors are incorporating annuities into their planning conversations:
- Predictable Income in an Unpredictable World
Even the best investment strategy can’t guarantee income. Annuities can. Whether it’s a fixed indexed annuity with an income rider or a deferred income annuity that kicks in later, these tools provide a reliable income floor that clients can’t outlive. This kind of stability resonates deeply with clients who fear becoming a burden or running out of money.
- A Hedge Against Sequence of Returns Risk
Most advisors understand this risk intellectually, but it’s hard for clients to grasp until they’re in it. Annuities can be a practical way to shield part of a portfolio from market downturns during early retirement years, buying time for other investments to recover. When positioned correctly, annuities can be an effective component of a growth strategy.
- More Planning Flexibility, Not Less
Clients sometimes object to the idea of locking up funds. But annuities can be more flexible than many may realize. Most allow partial withdrawals, penalty-free access, and customized payout structures based on client needs and goals.
And because annuities now come in fee-based structures, you can incorporate them into your planning without disrupting your advisory model or potentially raising red flags with compliance.
Visio advisors can access advanced tools, illustrations, and training to help match clients with the right solution, giving you added confidence when making recommendations.
How Independent Advisors Can Position Annuities With Clients
Some clients may not understand the positives of owning annuities. How you direct the conversation can make a big difference.
Some independent advisors have seen more success when framing their client discussions about annuities this way:
“Let’s talk about ways to turn a portion of your savings into a guaranteed paycheck so you know what’s coming in no matter what happens in the market.”
“You’ve worked hard to save. Let’s explore how to protect your income so you’re not forced to sell in a downturn.”
“This is about designing a plan that supports your lifestyle for as long as you live—not just until the market cooperates.”
Focus on outcomes, not products, and clients are more likely to see the value.
Clients Want Confidence
Annuities aren’t right for everyone, but then again, neither is a 100% market-based strategy in retirement.
If you haven’t reviewed the strategic role annuities can play lately, Annuity Awareness Month is the perfect time to re-engage. Because within a complete financial plan, annuities can offer your clients:
- Lifetime income
- Downside protection
- Predictable cash flow in retirement
- Greater confidence about the future
With the expanded access and resources provided through Visio, you can deliver all of that with greater ease, choice, and planning precision than ever before.
Want to explore how annuities can fit into your retirement income planning strategies as an independent advisor?
Let’s discuss how to integrate them thoughtfully, without compromising your planning philosophy or client relationships.