When asked how their use of variable annuities might change over the next five years, advisors are most likely (40%) to indicate they expect to maintain their current levels of use. The remaining advisors are evenly divided between those who expect a slight to significant decrease in use (30%) and those who expect a slight to significant increase (also 30%). This pattern is consistent across industry channels. The one exception: Advisors from larger firms, who are much more likely to expect an increase than are advisors from independent firms. In fact, advisors from large firms are equally likely to expect a slight increase as they are to expect no change (38% each).
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Another difference among advisors becomes apparent when you separate advisor expectations by their current use of variable annuities. For instance, those advisors who currently have 10% or more of their clients’ assets invested in variable annuities are far more likely to expect an increase (36%) than those with less than 10% of clients’ assets in variable annuities (21%). Interestingly, the former are also more likely to expect a decrease (32%) than the latter (27%). It seems the advisors most likely to expect the status quo are those who are least inclined to use variable annuities.
Next Part 2 of 4: Changing DOL Rules
