Help Your Clients Understand The Value Of Annuities

Annuities are a valuable resource for consumers’ retirement planning. They are a flexible tool that can protect income†

Published By - WisdomPlexus

Annuities are a valuable resource for consumers’ retirement planning. They are a flexible tool that can protect income from market risk, provide tax-deferred growth potential,§ and put families in control of their financial futures.

With the right kind of education and guidance, clients can better understand the role that annuities can play in growing their investment portfolios and helping secure their financial plans.

You have a key role in helping clients set the strategy that supports their life choices and future dreams. This could include highlighting the benefits of annuities as a source of guaranteed income while still providing the potential for market growth.

A study conducted by Jackson and the Insured Retirement Institute found that just 21% of savers chose an annuity when framed as a pure investment, but 72% of the same group selected an annuity when described as a tool to provide retirement income over a long period.1

At Jackson, we provide clear and concise materials about annuities designed to support your client conversations and offer straightforward guidance on the realities of retirement.

What is an annuity:

An annuity is a long-term, tax-deferred vehicle designed for retirement. Variable annuities may involve investment risk and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Guarantees are backed by the claims paying ability of the issuing insurance company.

§Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, it also may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.

Investing involves risk, including possible loss of principal.

1Insured Retirement Institute and Jackson, “The Language of Retirement,” June 2017.

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