Breaking Down the Retirement Risk

The retirement risk advisers think is most important for them to address is longevity.

In fact, 79% of advisers said the area of risk most important for them to focus on is longevity, according to the Cerulli Edge Retirement Edition, Third Quarter 2010. Sixteen percent of advisers thought this was somewhat important and 6% thought it was least important.   

The next most important area of risk is improper asset allocation; 77% chose that as the most important risk area to manage, 17% thought it was somewhat important, and 6% thought it was least important.

From these findings–that longevity and improper asset allocation are the most important areas of risk that advisers feel they manage–Cerulli drew the conclusion that advisers will continue to have a growing interest in guaranteed income options as possible solutions.   

Other areas of risk that advisers see as being important to tackle are:

  • Maintaining desire lifestyle, 70%
  • Inflation/purchasing power, 69%
  • Healthcare costs, 65%
  • Sequence of market returns, 50%
  • Taxes, 48%
  • Estate considerations, 35%