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Global Report

Retirement Income & Risk Planning 2023

Looking Beyond Today

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Overview

Given last year’s higher inflation, the worst stock market performance since 2008, and the worst bond market performance ever, it’s not surprising that financial professionals in 2023 are being more cautious in formulating their clients’ retirement income planning needs and managing their risks.

While not drastically changing course, financial professionals are being attentive to client concerns about greater longevity amid the unusual turbulence. That is the broad overview of results from this year’s in-depth study of advisors and retirement income and risk planning conducted recently by WealthManagement IQ sponsored by Allianz Life Insurance Company of North America.
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Webinar

This webinar will offer the first live look at the report’s key findings, as well as explore takeaways that
can make an advisor’s retirement planning efforts more productive. Specifically, the webinar will discuss:

  • Why risk management continues to be the top strategic planning priority for advisors.
  • What clients fear most: Running out of money.
  • The state of client preparedness for retirement.
  • How current conditions are causing clients to adjust expectations.
  • The investment products clients are most interested in now.
  • Which annuity types have doubled in popularity.

Speakers

Mark Bruno - Host

Managing Director, Wealth Management

Kristin Letourneau, PhD

Vice President, Research

Corey Walther

President, Allianz Life Financial Services, LLC

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By registering for this event you acknowledge that you are a licensed financial professional.

Research Highlights

Advisor Services

While advisors ranked investment management as their most frequently provided service to clients followed by retirement income planning, the services where they expect to see the most growth over the next two years are retirement income planning, financial plan development, risk management and estate planning—in that order. Those four services and their rankings are unchanged from last year.

Services Provided Most Frequently to Clients

Average Initial Withdrawal Rate 

Research Highlights
The median average initial withdrawal rate remains unchanged at 4% (a rate recommended by 38% of respondents in 2022 and 2023), but the percentage of advisors recommending an initial 5% withdrawal rate dropped to 18% from 23%, and the percentage of advisors recommending an initial withdrawal rate below 3% jumped to 13% from 2%. Clearly, advisors are reconfiguring plans based on market performance and confidence levels.

RISK MANAGEMENT

Risk management continues to be advisors’ top strategic planning priority, followed by holistic financial planning; the percentage of advisors rating those priorities as “very important,” however, fell slightly from 2022. Most advisors continue to believe their clients are prepared for retirement, although to a slightly less optimistic degree than last year. Longevity is seen as the greatest risk to retirement income plans, up from fourth place in 2022. The second-greatest risk to retirement income plans is perceived to be long-term care (up from third place) followed by inflation, which had been the perceived as the greatest risk in 2022.

Average Initial Withdrawal Rate 

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Takeaway & Suggestion

Annuity Products

Advisors continue to report a lukewarm level of client interest in annuity products, but the percentage of advisors who increased their use of fixed annuities and fixed index annuities approximately doubled.

Retirement Income & Risk Planning 2023:

Looking Beyond Today

This white paper will present highlights of that research, discuss their implications, and offer suggestions regarding the ways in which advisors can address the retirement income and planning needs of clients as another unsettled year unfolds.
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Allianz Life Insurance Company of North America does not offer financial planning services.

Guarantees are backed by the financial strength and claims-paying ability of issuing insurance company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

Products are issued by Allianz Life Insurance Company of North America. Variable products are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com

Overview

Webinar

Advisor Services

Risk Management

Annuity Products

White Paper

Looking Beyond Today

Download the Report
2022 Research

Retirement Income Planning in a World of Greater Risk

View 2022 Research Report