"Our industry right now is treading water and not growing," Ferris said. "We need to continue to focus on education of the advisor and making it repeatable to their client."

Plotnick said it's important to get new advisors on board. In many cases, investors purchasing new annuities are simply replacing an old one, she said.

Lockwood, the advisor, said the industry isn't moving toward fee-based annuities quickly enough. Also, many annuities now have "too many moving parts:" the riders change frequently, which is confusing, he said. "Now is the time for insurers to go back to the drawing board-make them more transparent and less costly."

Kevin Supka, an independent financial advisor with LPL Financial Services in Jenkintown, Pa., noted a general perception among advisors that annuities are very expensive. He calls that view "incorrect and foolhardy," and one that the industry needs to address through education.

Frank Astorino, president of Astorino Financial Group, a registered investment advisor in Fairfield, N.J., uses annuities for preretirement customers and those retiring with a lump sum distribution to help balance clients' risk tolerance or provide security. For the consumer, commercials would also be helpful, Astorino said. "You have to be able to turn on a TV and get the point across in 30 seconds."

There isn't much room for annuities to increase in price, Astorino said.

 

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