Advisers Willing to Buy Income Solutions--Curian Survey
August 3, 2008
A recent survey of independent financial advisors by Denver-based Curian Capital LLC shows that only 10% of advisers believe that 80% or more of their clients will have enough money to meet their expected living standards after they retire.
The results of the survey, sent last April to 1,305 advisors at 167 broker/dealers, revealed that the biggest perceived threat to retirement income plans was “too little time to build sufficient wealth prior to retirement.”
Forty percent of respondents said “too little time” was their clients’ biggest worry, compared to only 22% who cited inflation, 20% who cited market volatility, and 17% who cited rising health insurance costs as their biggest concern.
“Ninety percent of advisers said their clients aren’t adequately prepared for retirement. That was a confirmation of what we already believed,” said Chris Rosato, senior vice president of strategic development at Curian Capital. “But it surprised us that the predominant threat was the lack of time needed.”
Curian Capital, a 60-professional investment firm owned by Jackson National Life Insurance Company, a unit of UK-based Prudential plc, offers investment solutions, primarily separately managed account portfolios with a minimum investment of $25,000, to independent advisors and their clients.
But the firm’s attention is now shifting to income-generating accounts, which are currently in development and will be launched in 2009. Curian believes that their mass-customized income solutions will find a ready market among advisers.
“All advisers use these tools, and 55% said they would outsource it to someone else,” said Michael Bell, Curian’s president and CEO. Detailed results of Curian’s 2008 Advisor Survey are available from Andrew Silver, 303-224-7542, or andrew.silver@curian.com.
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