The key to retirement success — solving for the right needs

By staff writer Sponsored By EquiTrust

Clients in the accumulation or income phase of retirement? It matters when you’re building a smart strategy for the future.

Picture your clients — the people, not just the names. The goals and aspirations. If you were to ask 10 people what retirement means to them and if they’re ready, you’d get 10 different answers.

The truth is retirement isn’t one-size-fits-all. One client may have decades to prep and plan, while another may be just a few years away, or even on the cusp of retirement.

Their goals and time horizons are poles apart, but a well crafted strategy is essential to helping them turn their retirement dreams into reality.

Accumulation vs. income phases

As you approach each client, are you considering where they are in their retirement journey? If you’re not identifying them by their accumulation vs. income needs, you may be missing the mark.

How do the phases line up?

Accumulation

During the accumulation phase, individuals focus on saving money for retirement while employed, allowing their funds to grow over time through contributions and market gains.

Income

In the income phase of retirement, individuals focus on managing various income sources to maintain financial stability and pursue their goals after leaving the workforce.

Product suites for retirement phases

Meeting your clients’ unique needs starts with recognizing their stage in the funnel. Fixed index annuities (FIAs) come in all shapes and sizes, providing solutions for any stage of retirement. The key is to work with carriers who offer FIAs specifically designed for particular retirement phases, such as accumulation-focused FIAs and income focused FIAs.

Accumulation-focused FIAs help clients build savings now, while they’re in the workforce and envisioning the future. These products offer ways to accelerate earnings, like premium bonuses and/or accumulation value bonuses, higher credited rates and guaranteed accumulation value benefits. On the other hand, income-focused FIAs offer features that prepare the client for income distributions, such as income benefit riders (IBRs). IBRs help them secure guaranteed lifetime income, and may offer other advantages such as spousal continuation and the ability to boost income withdrawals in the event of a chronic illness.