What are some responses your clients have had to try to make
up a savings shortfall?
Reallocating investment options
Increasing savings rate
Changing/delaying retirement age
Changing standard of living
Going back to work
46.7%
80.0%
93.3%
54.8%
46.7%
How attractive are the following types of investment options for
use in retirement income planning/distribution?
1 is least attractive, 5 is most attractive
Payout mutual funds 2.73
Fixed annuities 3.45
Variable annuities 3. 15
Variable annuities with GMWB* 3.77
Mutual funds/fixed annuity combination 3.87
Absolute return mutual funds 2.92
Dividend-paying mutual funds 3.54
Fixed income/stable value 3.58
*guaranteed minimum withdrawal benefit
Likelihood that participants’ savings and known sources of
income will be sufficient to sustain their retirement needs.
Very likely 0.7%
Somewhat likely 16.3%
Somewhat unlikely 49.6%
Very unlikely 33.3%
Criteria used when deciding appropriateness of funds
for retirement income
Accessibility of money/liquidity
Adviser support
Brand/financial strength
Control/flexibility
Diversification
Fee structure for adviser
Fee structure for investor
Growth potential
Guarantees
Performance
Performance vs. benchmarks
Supporting materials
Underlying investment options
63.7%
24.4%
40.7%
47.4%
57.8%
8.1%
43.0%
23.0%
45.2%
33.3%
47.3%
7.4%
48.1%
How familiar are you with the following types of investment options?
Very familiar
25.2%
75.6%
77.0%
58.5%
61.5%
40.0%
82.2%
86.6%
Payout mutual fund
Fixed annuities
Variable annuities
Guaranteed minimum withdrawal benefit
Combination of funds and fixed annuities
Absolute return mutual funds
Dividend-paying mutual funds
Fixed income/stable value
Somewhat familiar
40.7%
21.5%
20.7%
24.4%
28.1%
36.3%
14.1%
11.9%
Somewhat unfamiliar
20.7%
3.0%
2.2%
14.8%
8.9%
17.8%
1.5%
0.7%
Very unfamiliar
13.3%
0.0%
0.0%
2.2%
1.5%
5.9%
2.2%
0.7%
METHODOLOGY
In April and May 2008, approximately 4,700 online survey questionnaires were sent to financial advisers from the PLANADVISER magazine database, and the survey link also was posted in
the PLANADVISER and PLANSPONSOR e-newsletters. We received 181 responses before the close
of the survey on May 8, 2008, of which 135 completed the survey in its entirety and passed our
eligibility criterion that the respondent be an adviser to employer-sponsored retirement plans.
The questionnaire, developed solely by PLANADVISER, consisted of 20 questions. The topics
covered by the questionnaire included the retirement readiness of advisers’ clients and plan
participants, their involvement in retirement income planning, and their product knowledge
of various solutions being introduced by investment companies and the attractiveness of those
solutions for retirement income distributions.
