DSG-Network.com: RM2 Research Reports

Advisor & Consumer Attitudes Toward Guaranteed Retirement Income Solutions

A syndicated research project to examine the current state of the market for guaranteed retirement income from the perspectives of both consumers and advisors.

A confluence of factors -- demographic trends toward an aging population, recognition by the financial services industry and its advisors that demand for retirement income solutions and advice can only increase, and the recent market upheavals which reduced asset values while exacerbating consumer fears -- has resulted in the need to take a closer look at guaranteed retirement income solutions.

Recent research by DSG indicates a growing preference for income guarantees by both consumers and advisors, but is this a permanent trend or merely a temporary reaction to worries about the market? What sort of trade-offs will the consumer accept in order to obtain a guarantee? And, what percentage of a client's assets will likely end up in guaranteed investments? The answers to these, and other important questions, will help determine what products and services need to be developed, what marketing approaches will make the greatest impact, and how the advisors can improve their potential for success.

In this multi-sponsor research program, DSG will examine consumer usage of, and satisfaction with, a number of guaranteed products including fixed and variable immediate annuities, annuitization of deferred annuities, various annuity products with guaranteed withdrawal benefits, and guarantees attached to mutual funds. The study will identify the key determinants of buy or non-buy decisions, what are the hurdles to affecting change in consumer behavior, and how companies can best communicate their product benefits. The study will also specify what makes a successful advisor for these product types, how these advisors target and position themselves with their clients, and what they need in terms of products or services to improve their results.

Consumer Survey: a quantitative study of 600 near-retirement and post-retirement consumers, split between those who currently receive guaranteed income payments and those who do not.
Advisor Interviews: a qualitative study consisting of 15 to 20 in-depth interviews with successful advisors who have a meaningful portion of their practice with individuals who are near or in retirement.

The information gathered in this study will yield an understanding of preferred products and features, successful marketing approaches, preferred customer and advisor profiles, and a better sense of where this market is headed in the near future. The study will cover guarantees provided by insurance firms, as well as the opportunity for mutual fund companies to provide guarantees via product development or partnerships.

The final report and recommendations will reflect DSG's analysis of the findings based on our extensive experience as leaders in the Retirement Income Market. It will also include data tables from the consumer survey, which may serve as "benchmarks" for measuring your own company's relative position. Optional modules for add-on proprietary research will also be available.

For further information and/or a Research Prospectus, please contact Borden Ayers at:

The Diversified Services Group, Inc.
303 West Lancaster Avenue, Suite 2E, Wayne, PA 19087
Phone: 610-989-1710, ext. 21 e-mail: bordena@dsg-network.com