People are living longer these days and looking to retire earlier. Therefore, today people are looking to fund a much longer retirement phase of life. With respect to life expectancy, the Social Security Administration states, “Americans turning 65 now are expected to live to age 85, and one in three 65-year-olds will live past age 90”. Most Americans also want to continue the level of lifestyle in retirement that they enjoyed while working of course. This presents some concerns such as, “how do I make sure that I don’t run out of money?”, or “How much should I take out of my retirement account each year?”.

Because of these concerns and the innovation of the products, Annuities, and more specifically Fixed Indexed Annuities, have become increasingly popular sources for income in retirement. Benefits like principal protection, growth potential, and lifetime income have become more appealing to retirees who are searching for safe havens for retirement assets. In fact, in 2018 78% of American’s said their top retirement goal was Lifetime Income, 76% said Income Stability, and 71% said Principal Protection (IALC, Retirement Readiness 2018). All these objectives are features of the Fixed Indexed Annuity, specifically those with Lifetime Income components. 

At Pinnacle Financial Services, we have all the annuity resources you need. We assist our agents with everything from start to finish with their annuity business. From contracting, leads, marketing, quoting, illustrations, case design, and business processing, our team is here to help. Let us help you increase your annuity business this June. Please contact us today to learn more about the Annuity products we offer, and how they might benefit your clients!

While so many Americans have recently lost money, those with assets invested in Fixed Indexed Annuities are totally protected. This is due to the principle protection component of indexed annuities. These fixed annuities earn interest when the index shows a positive change but will show no loss when the index shows a negative change (Ex: S&P Index). So, clients with indexed annuities may not earn interest in 2020, however, they did not lose any money in February!

Not only are indexed annuity clients protected right now, but they are positioned for growth. Within any crisis, there is an opportunity. Indexing strategies operate on a point-to-point basis, meaning clients will earn interest in any given year independent of the prior year (annual point-to-point). So, it does not matter what the index did in 2020… if it shows a positive in 2021, clients will earn interest based on the 2021 change. Bottom line – clients buying indexed annuities at a time like this (when indexes are low), have a high likelihood of earning strong interest moving forward.

Indexed Annuities also offer product features that can assist clients in re-cooping recent losses. An FIA with a Premium Bonus, a Lifetime Income Rider, or some type of LTC multiplier might help improve your client’s current financial situation. Let’s say you have a prospect who lost 15% of their IRA recently. You can tell them, “Mr. Client, I know you’re upset that your portfolio lost 15%, what if I could show you a product that would give you 10% guaranteed just for transferring the funds? With no risk of principle… Would you be interested in something like that?”

Perhaps your IRA prospect who recently lost 15% was planning on retiring soon but relying on that IRA to supplement income. You could talk to them about an FIA with a Guaranteed Lifetime Income Rider. Some Income Rider products offer bonuses to the income account of up to 20% in the first year. You could help them recapture that 15% loss with respect to their income payments moving forward. Many of these income riders will also double income payments for LTC or Nursing Home confinement.

At Pinnacle Financial we offer direct contracts and top-level commissions with dozens of A-Rated Annuity Carriers. Our team assists our Advisors with the entire Annuity sale from start to finish. This includes leads/marketing, illustrations/case design, CRM, and business processing. Please contact us today to learn more about the indexed annuity products that we offer here at Pinnacle Financial Services!