RISA and the Retirement Income Institute Release Groundbreaking Three-Part Research Series

RISA and the Retirement Income Institute Release Groundbreaking Three-Part Research Series

Focused on consumer preferences, this empirically validated research offers a new way forward for retirement income planning

By Joel Bruckenstein, CFP

Today, RISA® (Retirement Income Style Awareness), the psychology-backed, research-driven income personality assessment transforming retirement income planning, and the Retirement Income Institute of the Alliance for Lifetime Income – a non-profit consumer education association that creates awareness and educates Americans about the value and importance of having protected income in retirement, announced the release of a three-part research series that changes the conversation about retirement income strategies.

The research, which was commissioned by the Retirement Income Institute and authored by RISA co-founders and retirement income authorities Alex Murguia and Wade Pfau, turns traditional retirement income planning on its head by first focusing on the consumer and their preferences.

“This research gives us valuable and important insight into consumer behaviors and preferences that can help financial advisors develop practical retirement income strategies, customized to each individual,” said Jason Fichtner, a Senior Fellow and Head of the Retirement Income Institute. “Pensions have virtually disappeared and the traditional model for retirement income security may not provide sufficient, reliable and protected retirement income for Americans planning for retirement. A new framework is needed that focuses on how protected income from annuities can provide the retirement security consumers need and are looking for.”

The three-part research series focuses on the critical building blocks of a consumer-first retirement income approach, including:

  • Quantifying retirement income beliefs and preferences to determine a retirement income style
  • How retirement income preferences inform retirement income
  • Identifying limitations of risk tolerance questionnaires when it comes to addressing retirement income concerns

“Throughout the research process, we were able to surface undeniable connections between retirement preferences and retirement styles, and illustrate how these styles indicate the distinct retirement income strategies that resonate most closely with how each individual wants to generate retirement income,” said Wade Pfau. “For example, we discovered that at least two-thirds of consumers are seeking protected income solutions as a significant source of their retirement income.”

The development of the RISA matrix represents the practical application of Pfau and Murguia’s research, bringing together salient psychological concepts and retirement income planning into a systematized process for individuals and advisors to find the protected income strategies that best meet unique preferences.

Unlike in the accumulation phase of their financial journey, individuals in or approaching retirement face different risks that aren’t accounted for using traditional risk tolerance questionnaires. With the RISA, advisors can capture how their clients want to account for these risks and ensure those preferences are considered within their retirement income plan.

“The RISA is changing the retirement income conversation for advisors and their clients,” said Murguia. “For the first time, advisors can accurately identify an individual’s retirement income preferences and easily point them to a solution that accommodates those preferences, empowering the consumer with the knowledge, confidence and peace of mind that this is the right strategy for their retirement goals.”

Joel Bruckenstein
Joel Bruckenstein
Joel P. Bruckenstein, CFP®, is Publisher of the T3 Tech Hub (formerly the T3 newsletter) and the producer of the Technology Tools for Today (T3) Advisor Conference, the only annual technology conference for independent advisors, as well as the Technology Tools for Today (T3) Enterprise Conference. He also hosts other technology summits in partnership with thought leaders in the financial services industry (e.g., Brian Hamburger of MarketCounsel) and his own by-invitation-only fintech summit every summer. In 2020, Bruckenstein will produce for the first time a new one-day intensive called T3 Cyber University. Bruckenstein is an internationally acclaimed expert on applied technology as it relates to the financial service industry. He is the co-author of three books: Virtual Office Tools for a High Margin Practice, Tools and Techniques of Practice Management, and Technology Tools for Today’s High Margin Practice. Bruckenstein’s monthly technology columns appeared in Financial Advisor magazine and Financial Planning magazine for many years. In addition, he works in tandem with industry influential Bob Veres, publisher of Inside Information, to produce an annual technology survey for the financial planning community. Bruckenstein accepted the fifth annual Leadership Award bestowed by Bob Veres' Insider's Forum, a conference that brings together the leading figures of the financial planning profession during a main stage presentation at the Insider's Forum held September 6-8, 2017 in Nashville, TN. Bruckenstein has for more than twenty years advised financial service firms of all sizes on improving their technologies, processes and workflows. For more information about Joel Bruckenstein and the services his firm offers, please visit www.JoelBruckenstein.com.

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