With increased concerns about meeting their retirement goals, consumers and financial advisors are turning to variable annuities (VAs) as an effective investment tool, according to a survey released today by AllianceBernstein L.P. and the Insured Retirement Institute (IRI).

The survey, which queried financial advisors about their attitude and their clients' attitude toward guaranteed income solutions and VAs, indicates that financial advisors are using VAs to meet growing demand for more predictable and steady retirement income.

"The fact that fewer people today feel confident that they will be able to meet their financial needs in retirement is driving a robust market for lifetime income solutions," said Cathy Weatherford, president and CEO at IRI, a trade group for annuities. 

Key survey findings include:

Investors Seek Stability: Clients want secure retirement income above all else.

* An estimated 73% of dabblers (sold between one and ten contracts annually) and 79% of sellers (sold more than 10 contracts per year) said they never want their clients to have a year like 2008 again, and therefore will continue to recommend VAs.

VAs Gain New  Respect: The 2008 market crisis opened many clients' and advisors' eyes to the benefits of VAs.

* An estimated 50% of respondents recommended VAs more because their clients are demanding "guaranteed investments."

* An estimated 57% of respondents increased their use of VAs because the "designs have become more attractive."

VA Advocacy Is On The Rise: Advisors have dramatically increased their recommendations of VAs since 2008, mostly in response to greater client demand for guaranteed income.

* An estimated 49% of dabblers have increased their recommendations for VAs since the credit crisis.

* An estimated 60% of sellers have increased their recommendations for VAs since the credit crisis.

* An estimated 42% bring up VAs in "every conversation" with clients and see them as an important part of financial planning solutions.

Top VA Sellers Appear To Be More Successful: Top VA producers tend to have more successful practices and more high-net-worth clients.

* An estimated 45% have a combined fee- and commission-based compensation structure, most of which is commission-based.

* The average allocation for new clients is 29% VAs, 14% mutual funds, 14% IRAs, 8% life insurance, 6% unified managed accounts/mutual fund wrap accounts and 29% other.

* Sellers have double the number of high-net-worth clients (with investable assets between $1 million and $29 million) than dabblers and one-third more than non-sellers.

The survey of more than 500 financial advisors was commissioned by IRI and the investment management firm AllianceBernstein, and was conducted by market research firm InsightExpress.