More financial advisors are worried their clients will not be able to generate enough income to get through retirement than are the clients themselves, according to survey of nearly 1,300 advisors.

The Curian Capital 2011 Advisor Survey released yesterday showed the biggest fear for 43% of advisors is that their clients are not generating enough income to last through a long retirement, but only 36% of clients list that as their biggest fear.

The findings were part of the annual Curian survey of nearly 1,300 financial advisors this is designed to gauge how market volatility and the economic climate are impacting their investment strategies and their outlook for the future.

The results of the survey show the need for advisors to help educate their clients to the real risks to their retirement and the bundled products to help generate income and provide accumulation with risk controls, says Chris Rosato, senior vice president of strategic development for Curian.

"A lot of investors took their money when the market went south and invested in CDs, but they did not get to reap the benefits of the market coming back in the end of 2009 and in 2010," Rosato says. "The advisors need to make the conversation with the clients more about what the clients' goals are for a long-term retirement (rather than immediate market conditions) ... get them to consider the potential for inflation."

To meet the increased demands for retirement income, nearly two-thirds of advisors expect to increase their use of separately managed accounts and variable annuities this year, the survey shows.

Clients, on the other hand, are more worried about volatility, with 37% feeling volatility is their biggest threat to their retirement plans, while only 16% of advisors agree with them.

Because of clients' feelings, advisors say 58% of their clients have a lower tolerance for risk, even though the equity market has started coming back during the last 12 months. More clients want guaranteed income features in their investments, the advisors say.

Advisors (40%) think inflation will start to have a bigger affect on portfolio construction within the next year or two than other factors.

At the same time, the survey reveals advisors are equally split on their opinion about the economy, with 42% saying the recession is over and 46% saying it is not over. However, most advisors agree their clients are more pessimistic and feel the economy is not out of the recession.

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