With the old year drawing to a close and the New Year almost upon us, Nationwide Financial has taken a look at what likely lies ahead in a number of financial arenas, including retirement and the need for lifetime income. (Photo: Getty)
7. A broader market for long-term care coverage.
Most consumers lack coverage for long-term care, particularly since so many insurers have exited the market after badly underpricing policies years ago.
However, Henderson believes that more life insurance carriers will enter the market with alternative solutions to standalone products, thus providing them with more options. (Photo, following photos: Shutterstock)
6. More demand for guarantees.
All that market volatility isn’t going unnoticed.
Henderson points out that both consumers and advisors will be looking for more guarantees from existing products such as indexed universal life and whole life and no-lapse guarantee universal life.
He also expects reduced pricing on products thanks to rising interest rates.
5. Greater call volume from clients.
Worries about market volatility and rising interest rates means more clients will likely be calling their advisors for reassurance on their 401(k) portfolios.
4. More emphasis on HSAs.
In addition to concerns about the lack of LTC coverage, there’s the need to pay for health care in general during retirement.
Carter sees a renewed emphasis on health savings accounts, and says the company expects to see more interest in combined retirement programs that encourage savings in HSAs right along with 401(k)s and other more conventional savings vehicles.
3. Greater emphasis on technology.
Clients — whether participants, plan sponsors or intermediary partners — are looking for greater ease and convenience through technological solutions.
More retirement plan providers will be investing in new technologies so that they can provide better user experiences.
2. More concern over cybersecurity.
Plan sponsors and participants are increasingly concerned over the security of participant data.
Advisors will see this reflected during the RFP process with plan sponsors — not just for the retirement plan, but also for the scale of an organization’s entire IT operations.
1. Health/wealth discussions.
According to Carter, the exit from the market of 401(k) "dabblers" means that advisors should seek out providers with solutions that address more than just the retirement saving needs of participants.
Having discussions about both health and wealth is becoming part of retirement preparation.
In its 2019 Financial Services Outlook, John Carter, president of Nationwide Retirement Plans, Eric Henderson, senior vice president of its life and annuity business and Craig Hawley, head of Nationwide Advisory Solutions, offered some insights into what may lie ahead in the coming year for various aspects of retirement.
The slides above show potential trends these execs foresee in the months ahead.