Tim Beauregard
Regional VP-South

Inflation is a threat to retirees living on fixed incomes and workers nearing the end of their careers. Many clients are almost certainly wondering what it means to their ability to retire and what they should do if inflation persists.  It’s prime time for advisers to start having conversations with clients about how inflation could affect their plans and what they can do to minimize their risks.

Among the questions is whether they should be considering annuities. For those who already have contracts, a concern could be whether they would be better off swapping out products.

The stock market is volatile. Savvy retirees and pre-retirees are taking some of their equity gains and placing the proceeds in a deferred annuity for future income. Clients are harvesting gains now so that they will have money in the future. This is money clients will need because some of their other income sources have either been exhausted, lost value or lost spending power.

Researchers found that retirees spend less money over time out of necessity. Even normal inflation has an impact on finances in retirement. Spending decreases by an average of 12% over 20 years for a retiree, which makes it a great time to talk to clients about what they can do to hedge their inflation risk and protect assets.

You might be able to move a traditional fixed client into a fixed indexed product, simply because it will give them a little bit more opportunity to mitigate the risks associated with inflation. Products that provide increasing payments over time can also help; or you might review contracts they already have to see how if they help address inflation.

Contact the Experts at Wholehan Marketing with your next client to see what contracts are available to best address the threat of inflation on your client’s income and assets. We offer solutions with guaranteed level, increasing, or performance-based income for more potential down the road. Our marketers will work to match the best solution to you and your client. 1-800-535-6080