Retirees with a Guaranteed Income are Happier and Live Longer

Dee Costa, Sr. VP Business Consultant


Retirement happiness seems to be big news these days.  Economists have been doing work in the emerging field of “happiness research” and have started to publish their findings.  According to Time Magazine, The Wall Street Journal, and LIMRA, retirees who have a guaranteed paycheck coming in every month for the rest of their lives are much happier.  These studies show they actually live longer too!  

This makes sense because the number one worry of retirees is running out of money.  Retirees who have a set income for life remove a great deal of stress from their lives.  Prior generations used to get that guaranteed income from Social Security and a traditional pension to cover their basic living expenses.  But few employers now provide pensions, putting the onus of saving on the employee.  Social Security payments equal only about 40% of the average wage earners pre-retirement income.

How do we provide our clients and ourselves the additional guaranteed income?  How do we fill that income gap to create a steady paycheck for meeting basic needs? Income annuities provide an often-overlooked solution.  Most annuities offer an option for guaranteed lifetime income

As mentioned above, research shows that annuities provide both psychic and financial benefits.  According to the LIMRA Secure Retirement Institute Study, retired annuity owners feel more confident they’ll be able to afford their preferred retirement lifestyles than retirees who do not own an annuity – even if they live to age 90 or older.

The study released Feb. 20th found that 73% of retirees who own an annuity believe they will be able to live the retirement lifestyle they want, compared with just 64% of retirees who don’t.  Nearly 7 in 10 retirees who own an annuity are more confident their savings and investments will not run out if they live to age 90, compared with 57% of retirees who don’t own an annuity.  An annuity offers a solution for creating long-term income security along with the happiness that goes along with that.

The world has changed in the last year and no-one can really predict what’s ahead, but retirees are less interested in having all their retirement assets at risk.

Carl Richards, CFP and Sketch Guy commented “Risk is an arbitrary concept until you experience it.  Talking about being punched in the face is different from actually being punched in the face.”

Markets shed 40% back in March as efforts to slow the spread of coronavirus drove the economy to a near halt.  Though they bounced back remarkably fast, the economic outlook is uncertain, unemployment is high, and volatility is expected to remain until COVID -19 vaccines are widely distributed and are finally bringing the pandemic under control. 

We’re in uncharted waters, and our life rafts may not work the way they used to.  After years and years of printing money, bond yields remain paltry.  De-risking into higher allocation of bonds for the “fixed or guaranteed” income appears to no longer be as effective as it once was.  Most economists are not bullish on the outlook for bonds over the near future. 

Everyone we meet has a threshold for risk, but the vast majority of those retiring today are looking for ways to create that personal pension, that flow of guaranteed paychecks in retirement.  A well-diversified portfolio allows our clients, through the use of annuities, to create that guaranteed income stream to fill the gap for living essentials, and still remain in the market for longer term growth. 

Most retirees want a steady paycheck to cover their monthly necessities, they want to know that if the market bounces around that their retirement paycheck continues regardless.  If they are telling economists and researchers that this makes them happier, and we know from the studies it actually leads to a longer life, we are in a perfect position to help our clients eliminate fear and embrace a happy retirement.  As Tom Hegna says, “Don’t Worry, Retire Happy”.

Purpose Driven Women in Financial Services

Dee Costa, Sr. VP Business Consultant


The country is seeing a shift from a primarily male-dominated financial industry to a rapidly growing female demographic, with both female advisors and female clients, and this growing presence has forced a cultural shift. In fact, the female demographic is stronger than ever before.  In this article, Asset Marketing Systems would like to focus on a few specific attributes that female advisors possess and also shed some light on how all advisors can benefit from understanding the differences between female and male financial decision-makers. 

Statistics show that women are living longer, earning and inheriting sizeable sums of money, and becoming more engaged in the process of managing their wealth. In 2020 women controlled $72 trillion dollars of wealth, and according to Financial Advisor Magazine, two-thirds of the nation’s wealth will be controlled by women in 2030.

Women bring a plethora of unique and natural strengths to the world, but these intrinsic qualities make women excellent clients and advisors.

  1. Women are relationship-minded
  2. Women are driven by a purpose
  3. Women are masterful communicators

Relationship-Minded

Women desire a more balanced, holistic approach to finance.  Because women tend to be relationship-minded, they are more inclined to invest in long-term relationships with their advisors, and the woman-to-woman connection with like-minded female advisors adds strength to the equation.  They want to form a true connection.  Nurtured by nature, most think of money differently than just the numbers.  Families, charities, and in general relational connections weigh in on their financial decisions.  Perhaps most important, women are usually motivated by a purpose that runs deeper than a paycheck. 

Driven By a Purpose

Many women in the industry came into the business because of a personal experience.  Either they were beneficiaries of life insurance after their spouse died prematurely, or they were left stranded by the lack of life insurance.  Some were impacted by seeing family members who suffered financially due to an absence of planning for things like Long Term Care.  These experiences, especially coming from a female advisor, create a purpose that female clients can connect with.

For any advisor, developing the “why” that reveals a little about who you are and your reason for becoming a financial advisor helps create a stronger, more intimate connection.  We all have a story inside of us that drives why we do what we do.  Before you can “speak” about your why you need to “investigate” your why, digging deep to explore your feelings and your desires to help you recognize what truly drives you.  From there, you will create a script so powerful that every word coming out of your mouth rings true and aligns with your actions, marketing, and business process.  This one story will inspire more interest in your services, create a foundation of trust, and clarify your purpose in a magnetic way that ultimately attracts your ideal clients.  The “why” is your bulls-eye!

By implementing a purpose-driven practice, you will no longer question your value.  You will have more confidence that you are earning your fees, and you will feel less stressed and more organized.  Your focus will be clear.

Masterful Communicators

Because your marketing message is a true reflection of you and your beliefs, it will hold its value for many years.  So make sure that as you market yourself and your services, you present yourself in a way that truly stands out.  Be very image conscious! 

Choose a course of marketing that fits with who you are.  If speaking in front of people makes you break out in a cold sweat, that’s probably not a good choice for you.  If you love to host webinars, make sure you plan one every few months and incorporate that into your brand.

When marketing to the female client, choose your words and images strategically. Depending on where you live and what is open, there are many creative ways to attract female clients. See the Marketing Minute for ideas.

Everything you do must be driven by what works for you and your market.  This is your business, your unique message; own it, embrace it, and broadcast it far and wide.

Leveraging female attributes in the financial world creates a profound impact. It softens the process to become more personal.  It encourages trust, communicates a sense of ethics, and forms an environment where all of your clients feel well cared for.

Asset has several marketing tools available to help you capitalize on this growing market.  We invite you to be a part of our demographic movement to meet the needs of female advisors and clients.