The financial crisis may have one unintended consequence that would prove beneficial for millions of retirees.
There is a renewed focus among providers of retirement income products in the wake of the financial crisis.
The crisis has provided an opportunity for the remaining life and annuity insurers and asset managers to rethink their product offerings. The result could be a wave of innovation that is focused on retirement income and asset decumulation rather than asset accumulation and allocation:
“Decumulation strategies, over the next two decades, will likely have the same level of importance and emphasis that asset allocation strategies had in the "80s and "90s,” said Lynne Ford, managing director in the Charlotte, N.C., office of the retail retirement group for Wells Fargo Advisors LLC in St. Louis.
As a result, retirement industry observers are urging financial services companies to focus on process over product when attempting to deliver retirement income solutions to advisers and their clients.
Source: Investment News
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