The babyboomer generation left its mark on the retail financial services landscape as the cohort transitioned from the credit-taking to the accumulation stage. Mutual funds rose to prominence as financial wealth quadrupled. The demand for financial advice and products spurred a wave of innovation as distributors and product manufacturers competed for market share.
With the babyboomer generation now transitioning into retirement a new front is opening up. This September’s Insurance Advisory Service feature keys in on how the payout product shelf has evolved since 2011, the year the first babyboomer turned 65. With innovation set to feature prominently in the payout phase, the evolution of the payout product continuum is thoroughly examined through a lens of previous developments and continuous product improvements.
The crowded payout product continuum presented highlights the intense competition anticipated in the payout phase. The unique risks posed by converting retirement assets into a lifetime income stream open the door for new ideas and products to capture advisors’ and clients’ attention. The feature is an essential read for product manufacturers and distributors as the impact of the babyboomers’ transition into payout phase looks set to be as dramatic as their transition into the accumulation phase.