InvestmentNews

Retirement Income Survey 
 
 
 
 
 
 
 
 
 
 
Creating retirement income strategies for your clients 
 

InvestmentNews recently surveyed advisers, brokers and insurance agents about their 
strategies for establishing retirement income plans for their clients. The survey opened on Friday, Apr. 
1, and closed on Monday, Apr. 11. 
Of the 780 survey respondents, nearly 30% indicated they were affiliated with a registered 
investment advisory firm. About 60% indicated they worked for a financial planning firm, 
wirehouse/regional brokerage, insurance company or independent broker‐dealer. 
The following data compares the responses of this group of “RIAs” to those of the “non‐RIAs.” 
 
For more information, email Mark Bruno at mbruno@investmentnews.com 
 

 
M i t i i th li t' lif t l
Maintaining the client's lifestyle
Advisers' main focus in helping a client prepare for retirement

48.0%

15 9%
15.9%
14.5% 16.9%

4 8%
4.8%
Asset 
accumulation Preservation of 
wealth Income 
generation Reduce portfolio 
volatility Maintaining
Maintaining 
client's lifestyle

Based on 629 responses to this question.
Maintaining the client's lifestyle: Non‐RIAs vs. RIA Non‐RIAs RIAs

47.8%

18.7% 13.8% 48.1%

15.3%

14.6% 18.3%
14.1% 4.4%
4.9%

Asset accumulation Preservation of  Income generation Reduce portfolio  Maintaining client's 

wealth volatility lifestyle
Based on 426 non‐RIA and 203 RIA responses to this question.
At l
At least half of clients will be able to maintain current lifestyle
t h lf f li t ill b bl t i t i t lif t l
Taking into account current savings and projected investment income

169 170

67

13
1

0%‐10% 11%‐25% 26%‐50% 51%‐75% 76%‐100%

At least half of clients will be able to maintain current lifestyle:
At least half of clients will be able to maintain current lifestyle:
Non‐RIAs vs. RIAs
RIAs
Non‐RIAs

43.0% 38.7%

15.5%
38.8% 41.4%

16.2%

26% 50%
26%‐50% 51% 75%
51%‐75% 76% 100%
76%‐100%

Based on 278 non‐RIAs and 142 RIAs who responded to this question. Graph does not include "0%‐10% " and  "11%‐25%," as rate was less than 5% 

in both non‐RIA and RIA samples.
P
Preserving capital and managing volatility
i it l d i l tilit
Key goals when establishing clients' retirement plans

24.5% 24.9%

15.4% 15 1%
15.1%
11.1%
9.1%

Preserving 
g Managing 
g g Participating in 
p g Covering health 
g Eliminating debt
g Other
capital volatility makret upside care and medical 
expenses
Based on 596 responses to this question. Respondents were allowed to choose more  than one answer.
Preserving capital and managing volatility: Non RIAs vs RIAs
Preserving capital and managing volatility: Non RIAs vs. RIAs

RIAs
Non‐RIAs
23.9% 25.6%

16.8%
14.4%
24.7%
24.5%
11.3%
14.7% 7.9%
15.4%
11.1%
Preserving  9.7%
capital Managing 
Managing
volatility Participating 
in makret  Covering 
health care  Eliminating 
upside Other
and medical  debt
expenses

Based on 401 non‐RIA and 105 RIA responses to this question. Respondents were allowed to choose more than one answer.

F
For clients near retirement, need for advisory services increases
li t ti t df d i i i

37.3%
Stays the same
y

3.7%
Decrease

58.9%
Increase

Based on 587 responses to this question.
Cli t ' li
Clients' reliance on advisers: Non RIAs vs. RIAs
d i N RIA RIA

Stays the  34.3% 43.5%

same

Non‐RIAs
2.8% RIAs
Decrease 5.7%

Increase
62.9% 50.8%

Based on 394 non‐RIA and 193 RIA responses to this question.
Longevity and lack of assets looming over stability
Longevity and lack of assets looming over stability
Toughest obstacles in creating a stable plan for clients

Oth
Other 7 4%
7.4%

Uncertainty of Social Security  0.6%
payments

Lack of assets 27.3%

Long‐term care cost 4.2%

Longevity 28.6%

Inflation/interest rate volatility 18 8%
18.8%

Health‐care expenses
p 13.1%

Based on 542 responses to this question.
Longevity and lack of assets: Non RIA vs RIAs
Longevity and lack of assets: Non‐RIA vs. RIAs

Other 7 1%
7.1% 7 9%
7.9%

Lack of assets 26.4% 29.2%

Longevity 29.1% 27.5%

Inflation/interest rate  18.7% 19.1%

volatility

13.2% 12.9% Non‐RIAs

Health‐care expenses
RIAss

Based on 364 non‐RIA and 178 RIA responses to this question. Does not  "Uncertainty of Social Security payments" and "Long‐term care cost," as 
rates were less than  5% for each choice in both non‐RIA and RIA samples.
R
Revenue boost
b t
Increased services allow advisers to generate additional forms of revenue

72.0%

28.0%

Yes No

Based on 339 responses to this question.
R b b kd N RIA RIA
Revenue boost breakdown: Non‐RIAs vs. RIAs Non‐RIAs RIAs
Majority of advisers at RIAs said increased services do not allow them to generate additional forms of revenue

78.0%

57.1%
57 1%

42.9%

22 0%
22.0%

Yes No

Based on 241 non‐RIA and 98 RIA responses to this question.
Asset responsibility
Asset responsibility
Advisers are asked to supervise more assets for existing clients approaching 

30.1%
Stays the same
y

6.5%
Decrease

63.4%
Increase

Based on 565 responses to this question.
A t
Asset responsibility: Non‐RIAs vs. RIAs
ibilit N RIA RIA

34.9%
Stays the 
same 27.7%

7.0% RIA
RIAs
Decrease Non‐RIAs
6.3%

58.1%
Increase
66.0%

Based on 379 non‐RIA and 186 RIA  responses to this question.
N
New assets from existing clients: Account types acquired
t f i ti li t A tt i d

39.9%

26.4%

17.7%

5.3% 5.8% 5.0%

401(k)s Brokerage IRAs Keogh plans SIMPLE trusts Other

Based on  545 responses to this question. Respondents were allowed to choose more than one answer.
A i d N RIA RIA
Account types acquired: Non‐RIAs vs. RIAs Non‐RIAs RIAs

41.6%

23.0%

17 6%
17.6%

39.2%
27.9%
17.7% 5 9%
5.9% 5.4% 6 5%
6.5%
5.0% 5.9% 4.4%

401(k)s Brokerage IRAs Keogh plans SIMPLE trusts Other

Based on 370 non‐RIA and 175 RIA responses to this question. Respondents were allowed to choose more than one answer.
F
Frequently used alternative investment strategies
tl d lt ti i t t t t i

Absolute return 
funds, 15.9%
,

REITs, 29.3%
Collectibles, 0.2%

Commodities,   
20.6%

Private 
equity, 5.3%

Hedge funds, 5.2%
Precious 
metals, 12.9% Managed 
f t 10 5%
futures, 10.5%

Based on  374 responses to this question. Respondents were allowed to choose more than one answer.
F
Frequently used alternative investment strategies: Non‐RIAs
tl d lt ti i t t t t i N RIA

Absolute return 
funds, 17.2%
,

REITs, 28.9%
Collectibles, 0.3%

Commodities,   
19.0%

Private 
equity, 6.0%

Hedge funds, 5.3%
Precious 
metals, 12.2% Managed 
futures, 11.1%
,

Based on 245 responses. Respondents were allowed to choose more than one answer.
F
Frequently used alternative investment strategies: RIAs
tl d lt ti i t t t t i RIA
Absolute return 
funds, 13.5%

Collectibles, 0.0%
REITs, 30.0%

Commodities,   
C diti
23.9%

Private 
equity, 4.0%

Precious  Hedge funds, 5.2%
metals, 14.4% Managed 
futures, 9.2%
futures, 9.2%

Based on 129 responses to this question. Respondents were allowed to choose more than one answer.
 A i f ii d i i l
Average rating of annuities products use in retirement plans
(1=Never, 5=Always)

Longevity annuities 1.47

Immediate annuities 2.09

Equity index annuities 1.69

Variable annuities 2.67

Fixed annuities 2.09

0 0.5 1 1.5 2 2.5 3

Based on 414 responses to this question.
 Ch i d i ' it f ll i 2008 i d t
Changes in advisers' annuity usage following 2008 economic downturn
Advisers at RIAs have not considerably changed application of annuities in retirement plans 

Non‐RIAs
65.2%
RIAs

55.4%

29.7%

18.8%

Increased Do not use

Based on 276 non‐RIA and 148 RIA responses to this question.