Inflation, Ukraine Have Clients Worried About Nest Eggs

That's according to a new survey of nearly 200 investment advisors.

By Rethinking65

More than nine in 10 advisors say clients are anxious about inflation’s impact on their retirement portfolios. At the same time, 70% say clients are uneasy about the war in Ukraine and the impact of geopolitical instability on their nest eggs.

That’s according to a new survey of nearly 200 financial advisors. It found that 82% of respondents say clients are concerned about outliving their retirement savings. Sixty-four percent said clients also are worried about retiring on time. RetireOne and Midland National Life Insurance Co. jointly did the survey.

Meanwhile, 92% of respondents are confident they have the tools to keep their clients happy.

However, the results called into question whether advisors actually have the tools to best serve clients, say RetireOne and Midland. Only four in 10 respondents use income-planning software, while 85% use financial planning tools. For principal protection, 41% allocate to certificates of deposit, 60% use money market accounts, and 49% keep clients in cash.

With rising interest rates and increased market volatility, however, more advisors are taking a closer look at annuities to generate income for clients. In RetireOne’s 2022 survey, 65% of advisors said they would refer annuities to their clients should their needs be addressed by the features of a specific offering. That compares to 52% last year.

RetireOne serves more than 1,000 RIAs and fee-based advisors. Last year, it partnered with Midland to offer Constance, a zero-commission contingent deferred annuity.

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