Staying ahead of the retirement income curve
Allianz Retire+ has highlighted the benefits of financial advisers becoming specialists in guaranteed lifetime income solutions.
The retirement product provider’s recent white paper titled Retirement Income Products Reframed has underscored why advisers should distinguish themselves from competitors in the lifetime income space.
According to the paper, developing a specialist knowledge of retirement income products enables advisers to focus on the wellbeing of current and future clients, leading to improved client satisfaction.
“This proactive approach fosters trust and loyalty, important to maintain long-term client relationships with this generation and the next,” it described.
Actively promoting guaranteed lifetime income solutions to clients can help advisers position themselves as a specialist in this growth segment, giving them a competitive advantage over those who aren’t ahead of the curve.
“You can distinguish yourself from your competitors by taking the initiative and positioning yourself as a retirement income specialist. By providing access to products that minimise or eliminate common risk factors – such as longevity and market risk – you can enhance client outcomes.”
With approximately 700 Australians retiring every day, according to Firstlinks, Allianz Retire+ underscored the importance of being at the forefront of product innovation in the retirement income space to attract new clients.
The paper continued: “As an increasing number of Baby Boomers approach retirement and demand grows, advisers with a profound understanding of guaranteed lifetime income solutions will attract new clients seeking guidance to maximise their retirement outcomes.
“Championing emerging trends boosts recognition and unlocks opportunities as a thought leader in your field. An active voice on topics such as guaranteed lifetime income can help generate opportunities for enhanced visibility, drawing in potential new clients and encouraging referrals from existing clients.”
Building trust and confidence when communicating with clients on this topic is also equally important, the report outlined.
Key elements of having effective lifetime income discussions with clients includes:
- Acknowledging their concerns about retirement.
- Clarifying clients’ retirement objectives and priorities.
- Addressing misconceptions directly.
- Explaining differences between traditional retirement income products and next generation products.
- Ensuring clients understand each option available.
As more retirement income products hit the market, Deloitte previously called for greater clarity in the sector, with the array of existing solutions leading to confusion among consumers.
“We note that almost every lifetime income product offered is different and therefore simple comparisons between them are almost impossible, especially for non-advised members. In fact, some products have been developed to be distributed by advisers alone.
“When it comes to retirement products, it is difficult to simultaneously achieve product innovation and standardisation. A careful balance therefore needs to be tread,” the consultancy firm stated in its submission to the Treasury’s Superannuation in Retirement consultation.
It called for standardised product building blocks which would be simpler to develop and easier for members to understand.
AUTHOR
Jasmine Siljic
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