Page 27 - Investment Advisor February/March 2023

Lau points out, traditional single premium immediate annui- as it pertains to income solutions. She hopes this work will
ties now make up just a fraction of all annual annuity sales, continue, and that advisors will continue to warm to the use of
generating some $6 billion in sales in 2021 out of $255 billion annuities as part of a client’s holistic plan for retirement.
in total placements. Registered index-linked annuities, on the “Our point of view at Hueler Companies is that we need
other hand, clocked $39 billion in sales in 2021, a whopping to all work together to create meaningful competition at the
62% jump over 2020. point of annuity purchase, whether we are talking about annu-
RILAs are predicted to experience continued growth as ities being purchased inside or outside of retirement plans,”
investors seek solutions offering a balance of protection and she says. “The open architecture style is the future of income,
growth, he says. Other annuity categories to study include and that is very exciting from where we sit.”
deferred income annuities, fixed indexed annuities, variable Based on her firsthand experience, Hueler says the
annuities and others. most important thing to emphasize is the need to have

“For many years, it was really hard to get advisory

people to sit down with us and have discussions about

lifetime income. Today, things are a lot different.”

—Kelli Hueler

“Advisors need to understand that annuities are probably genuine competition and pricing transparency at the point
the most diverse product type that exists in financial services,” of annuity purchase.
Lau explains. “This is why I find it so problematic when I “In our conversations with retirement advisors and wealth
speak with advisors and they tell me they ‘just don’t use annui- managers, they emphasize this point, because they are either
ties.’ That is such a counterproductive perspective.” working in a fiduciary capacity for their clients or their clients
While many in the financial planning world are still study- are in the position of being retirement plan fiduciaries them-
ing up on the best ways to communicate about and deliver selves,” Hueler says. “No matter how good an annuity product
annuities to retirement clients, Kelli Hueler, CEO and found- manufacturer is, no single provider can offer the best solution
er of Hueler Companies, has been working on the challenge in every situation, and so choice and competition are such
for many years. important elements to consider.”
Hueler founded her firm in 1987, and today Hueler Matthew Eickman, national retirement practice leader
Companies is recognized as an innovative technology and for Qualified Plan Advisors, agrees with Hueler’s point of
research provider offering resources for the analysis, selec- view, and he says the growing focus on retirement income
tion and implementation of stable value and lifetime income solutions in both the retail and institutional retirement
annuity products. She sees the U.S. as still being in the “early planning settings should help to drive down the cost of
innings of retirement income,” but she is more encouraged insurance products over time. “I expect the competition
than ever about the spirit of innovation and collaboration between carriers will drive down prices, as will the fact that
shared by annuity product manufacturers, financial advisors the carriers’ actuarial teams will have better and better data
and retirement plan providers. upon which to build their models,” Eickman says. “They
“There were a lot of days in the past when we felt like we will be able to assess risk and price their solutions more
were painfully ahead of our time, given our focus on annuity intelligently and efficiently.”
distribution,” Hueler says. “For many years, it was really hard Eickman, Hueler and Lau predict substantial insurance
to get advisory people to sit down with us and have discussions product innovation during 2023 and beyond, with attractive
about lifetime income. Today, things are a lot different.” solutions coming to market in both the retail and institutional
In the past few years, Hueler explains, the financial advi- retirement planning markets. Combined with Social Security
sor community has actually helped to better inform annuity and liquid savings, these solutions can be expected to play an
product manufacturers about what their clients want and need important role in clients’ “personal pensions,” the trio agrees.

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