Annuity specialists in hot demand among US advisers

As the youngest cohort of Baby Boomers – widely considered the richest generation in history – transition into retirement, financial advisers are calling out for more specialists in retirement-ready solutions, like annuities, to meet client demand and ensure effective portfolio diversification.

The survey of nearly 800 US-based financial advisers, conducted by ISS Market Intelligence (MI) as part of its Advisor Pulse Series, stressed the increasingly critical role, overall, of specialists in addressing complexity within the advice and general wealth management space.

Close to half (47%) of those surveyed called for a greater emphasis on annuity specialists within their practices to improve vehicle choice and guide portfolio construction for investors, ISS found.

Further, 42% of respondents want greater emphasis on alternatives specialists, as investors seek more diverse investment options.

The study also found that advisers are engaging more frequently with specialists on in-demand products.

A quarter (25%) of advisers reported an increase in meetings over the past year for alternatives, annuities, and ETFs.

“This uptick in engagement reflects the growing demand for specialised expertise to navigate evolving financial products and strategies,” ISS wrote.

However, challenges persist in leveraging specialists effectively, the survey found.

While nearly two out of three (61%) advisers make use of specialists for their product expertise, a number of obstacles appear to be hobbling these collaborative engagements.

When working with specialists, more than one in three (38%) advisers said they were challenged by misalignment between investment processes, while one quarter (25%) regard specialists’ depth of expertise, or perhaps lack thereof, as their most significant challenge.