A fundamental lack of trust is one major reason why a large segment of consumers may be reluctant to allow financial services providers to help them with their retirement savings and income planning, a survey by Deloitte’s Center for Financial Services has revealed.
Deloitte’s survey of nearly 4,500 consumers from a wide range of age and income groups found trust issues to be one of five barriers preventing life insurers, annuity companies and their intermediaries from more effectively reaching prospects when it comes to retirement products and services.
Too often there is a tendency in the industry to take a narrow, product-centric approach to selling retirement solutions, when in fact the reality is that many consumers are often juggling multiple and more immediate financial priorities. Acknowledging the totality of real-life concerns that individuals face and engaging in conversations about them can go a long way toward establishing the trust that is so clearly needed in the industry.
In addition, there has to be greater candor on the industry’s part and a genuine attempt to become facilitators and enablers, as opposed to just serving as product providers and transaction generators. Talking about retirement in the context of other financial and lifestyle concerns is likely to result in greater trust and willingness to embrace the retirement planning discipline.