Demographics are key: Who’s Most Likely to Be Receptive to the FIA Message

While Baby Boomers are the most receptive to conversations concerning FIAs, it's worthwhile to broach the subject with Generation X clients – those who were born roughly between 1965 and 1980, and who are nearing or reaching their 50s.

The Athene study revealed that more than half of brokers (53%) discuss FIAs with clients in their 40s. This group is ripe for the conversation. While their retirement needs may not be as imminent as their slightly-elders, this generation has its own formidable challenges. "Members of Generation X face the daunting task of planning for a retirement that will likely include no pension, a potential Social Security haircut, stagnant wages and high education costs for them and their children," according to a CNBC.com article. And while this group isn't nearly as large as the Baby Boomers, Generation X is no small market, with 46 million members.

Gen Y and Millennials should also be made aware of FIAs due to their generation-specific issues. While only 14 percent of brokers bring up FIAs with clients in their 20s and only one-fourth include FIAs in conversations with those in their 30s, individuals who were born between the early 1980s and the early 2000s. According to recent data from the Indexed Annuity Leadership Council (IALC), a significant 37 percent of millennials say they have no money at all saved for retirement, and 24 percent of millennials say they owe more money than they've been able to save. The good news is that more than half – 52 % of millennials – more than any other age group – report an interest in FIAs.

Broker-dealers also are finding that they are talking more to clients who fit into specific wealth brackets than others. A large percentage of survey participants reported that they occasionally or more often discuss FIAs with clients who fall in the mass affluent range. About three-fourths of surveyed brokers reported that they occasionally or most often talk about FIAs with clients with a net worth of between $100,000 and $999,999. In contrast, 41 percent of brokers speak about FIAs often or occasionally with those with less total net worth. Client-broker conversations about FIAs are taking place occasionally or often when the client is more affluent as well. The Athene survey ascertained that nearly seven in 10 brokers were discussing FIAs with clients that have total net worth in excess of $1 million.