Financial advisors report that clients rarely request annuities by name. Instead, they express a desire for financial confidence—to travel more, support adult children, or stop obsessively checking account balances during market downturns. A growing body of research indicates that guaranteed income streams are among the most direct ways to achieve that peace of mind.
BlackRock's 2024 retirement study, "Been There, Valued That," found that 84% of annuity owners said guaranteed income reduces their vulnerability to financial fraud or poor investment decisions as they age. Additionally, 53% reported that owning an annuity makes them more comfortable spending non-guaranteed assets on discretionary wants and needs. LIMRA's "Path to Purchase" research on deferred annuity buyers explores what distinguishes clients who incorporate annuities into their financial plans from those who remain anxious and never act.
For advisors, the challenge is translating vague anxiety into a concrete recommendation without sounding like a sales pitch. Jesse VanValin, senior vice president and private wealth advisor at Procyon, emphasizes starting with the plan, not the product. When a client mentions wanting to travel more or stop checking balances, VanValin quantifies the desired income, calculates monthly lifestyle costs, and determines how much Social Security or a pension already covers.
"If there's a gap, we walk through the ways to fill it, and a guaranteed income annuity is simply one option next to a bond ladder or a cash bucket," VanValin said. "If the client sees the gap themselves and chooses the tool, it never feels like a sales pitch; it just feels like the option they were looking for."
Troy Randall, director of insured solutions at RBC Wealth Management – U.S., frames the conversation around income clients cannot outlive. Certain annuities are designed to limit or avoid losses while paying out for a set number of years or for life, echoing the familiar structure of a parent's pension. "They go from paycheck to what I call 'mycheck,'" Randall said. "Clients that have created an income floor based on annuity income protections just add to their sense of financial confidence."
Once guaranteed income is in place, advisors observe significant behavioral shifts. VanValin notes that clients actually spend the money they had set aside for travel or gifts, and they make fewer panicked calls during downturns. "The other benefit is that the rest of the portfolio gets to do its job, since we're not forced to sell growth assets at a bad time to cover everyday expenses," he said. Randall sees similar patterns: clients with guaranteed income spend less time worrying about markets and more time with family.
Both advisors caution against overselling annuities. VanValin stresses that an annuity covers a specific slice of a financial plan and involves tradeoffs in liquidity, cost, and flexibility. "The peace of mind comes from having a plan where the essentials are handled, not from any one product," he said. Randall adds that lack of understanding is the real risk: "Overselling something is simply creating an environment where something is not understood."
As annuity sales hit record levels, advisors are increasingly integrating guaranteed income into broader retirement planning. For more on retirement confidence, see this survey on solo agers and Schroders' findings on the income gap.
