As always, the key is to work closely with your clients to determine what makes the most sense for their individual situations and objectives.
Myth 4: As they say, nothing is certain except death and taxes—there is no way retirement income can truly be guaranteed. Yes, the income is truly guaranteed. Remind your clients that an annuity is a contract with an insurance company, so the guarantee of future payments is based on the financial strength of the insurer.
Note that insurance companies are highly regulated, with independent agencies routinely assessing and rating the financial strength of providers. Even following the profound effects of the 2008 financial crisis, the impact on most insurance companies and their policyholders was limited, with a few exceptions.
A turbulent economy can lead clients to reevaluate their retirement planning strategies. As financial conditions evolve, encourage clients to explore various retirement solutions and products, including annuities, as part of a robust plan that helps them protect investments, enable growth and guarantee they won’t outlive their income.
Eric Henderson is the president of Nationwide Annuity.