Data & Research November 21, 2018

LIMRA Study Shows Interest in Annuities

The research finds that individuals most likely to be interested in annuities are younger and still working, which LIMRA SRI says creates an opportunity for future conversations for advisers.

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LIMRA Secure Retirement Institute (LIMRA SRI) research shows that individuals most likely to be interested in annuities are younger and still working.

LIMRA SRI wanted to take a closer look at those who debated buying annuities but decided not to purchase and find out why. Forty-two percent of these consumers were open to the idea of annuities. They feel annuities are good products and would consider purchasing in the future.

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The top reason for not buying annuities for this group was that it wasn’t the right time (44%). Nearly two-thirds of this segment is not retired and only three in 10 of the non-retirees plan to retire in the next 10 years. Also within this group of consumers, 61% say having enough money to last through retirement years is their single most important objective for their assets in retirement.

On the opposite side of the spectrum, 18% of those who didn’t buy an annuity would most likely never own one. They most identified with the statement they do not like annuities and would likely never consider buying one. About half of this group is already retired and one-third plan to retire in the next four years. Another characteristic of this group is they give the highest importance on control over how investments are managed and are more likely to have guaranteed income through their pensions, which is not the case with younger workers.

Defined contribution (DC) plan sponsors have been hesitant to offer annuities as an investment option to participants, mostly for want of a better safe harbor for selecting an annuity provider that would protect them from fiduciary liability. Some also believe the take-up rate by employees would be low.

LIMRA SRI points out that prior research shows retiree annuity owners feel more confident that they are more likely to afford their preferred retirement lifestyles–even if they live to age 90 or older–than retirees who do not own an annuity. Seventy-three percent of retirees who own an annuity believe they will be able to live the retirement lifestyle they want, compared to just 64% of retirees who don’t own annuities. Additionally, 69% of retirees who own an annuity are more confident that their savings and investments will not run out if they live to age 90, compared with 57% of retirees who don’t own an annuity.
Products November 21, 2018

Morgan Stanley Revamps Advisory Platform With WealthDesk

After being one of the first national firms to address the DOL’s now-defunct fiduciary rule, the firm says it is turning a new page in client service and adviser support by launching its digital WealthDesk platform.

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According to Morgan Stanley executives, the firm has formally launched a new digital advisory platform that represents a significant shift in the way its registered representatives interact with wealth management and retirement clients.

The firm tells PLANADVISER its new advisory platform is designed to provide a consolidated view of client relationships and portfolios. The firm stresses that the platform “integrates planning, advice and implementation, all on one dashboard.”

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“Developed in collaboration and at the request of many of our advisers, WealthDesk represents a significant enhancement to the way advisory relationships are managed and grown,” a spokesperson says. “Feedback from advisers in our pilot has been excellent.”

According to the firm, there are four key areas of WealthDesk. First is a “portfolio advice” solution that integrates the Morgan Stanley Goals Planning System (GPS). This includes an investment screening tool, and support with the implementation of portfolios for advisory accounts, which enables advisers to deliver comprehensive investment advice more efficiently.

Next, Morgan Stanley says, the enhanced risk analysis available in WealthDesk (powered by Aladdin) offers “a full suite of institutional-caliber risk analytics” so advisers can see the impact of portfolio changes before they are made. 

“Management and analysis of variances will also be made easier through the Variance Dashboard, which provides a view of variances across an adviser’s book of business in one place,” the firm says.

Beyond these features, WealthDesk establishes a pricing strategy that “aligns to the full value advisers deliver” and “consistently applies stored advisory fee schedules across CG billing relationships.”

The firm suggests one more powerful feature is the “client playback.” This is described as “a new consolidated summary which provides clients with a holistic view of their plans and portfolios each quarter.”

Asked whether the wealth platform will be put into use among the retirement specialists at Morgan Stanley, the spokesperson indicated that WealthDesk will be rolled out to the entire adviser force. This move is based in the firm’s belief that “the future of wealth is the combination of advisers and best-in-class technology.”

The spokesperson also confirmed trade media reports that the firm expects the WealthDesk platform to be rolled out over the next two years—and that it will become Morgan Stanley advisers’ preferred centralized client relationship management system over that time period. 

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