Half of Americans say they don’t understand what an annuity is and seventeen percent say their initial reaction to the word “annuity” is “complicated.” There’s also an uncertainty about who to turn to for advice on the product, although survey respondents said they are most likely to turn to a financial advisor or planner (34 percent) for more information on annuities.
“The instrumental role that annuities can play in a retirement income portfolio makes it essential for investors to better understand how they potentially fit into their investment plans,” notes Valenzuela. “Our survey shows that most investors lack a basic understanding of annuities and that more education is needed.”
The Schwab Retirement Income Variable Annuity is available through Schwab branches nationwide. Additional information about the Schwab Retirement Income Variable Annuity is available at schwab.com/annuities or by calling (888) 311-4889. For clear and actionable guidance on how to plan an overall income generation strategy that fits your retirement goals, Schwab has nine Retirement Income Fundamentals that help ease the transition from saving for retirement to spending in retirement available at www.schwab.com/incomefundamentals.
About the SurveyThe Charles Schwab Retirement Survey was conducted by Koski Research between January 3 and 7, 2013, using Random Digit Dialing of listed and unlisted numbers, with 20 percent of the sample reached by cellular/mobile phones. Quotas are set to ensure reliable and accurate representation of the entire U.S. population ages 18 and over. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. The study’s margin of error is +/- 3.1 percent. About Charles Schwab The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.8 million active brokerage accounts, 1.6 million corporate retirement plan participants, 865,000 banking accounts, and $1.95 trillion in client assets as of December 31, 2012. The company was ranked ‘Highest in Investor Satisfaction With Self-Directed Services’ in the 2012 US Self-Directed Investor Satisfaction Study SM from J.D Power and Associates. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides trust and custody services, banking and lending services and products. Investment products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. More information is available at www.schwab.com and www.aboutschwab.com. (0213-1179) Follow us on Twitter: @charlesschwabRead our blog: Schwab Talk Disclosures Variable annuities are sold by prospectus only. Before purchasing a variable annuity, you should carefully read the prospectus and consider all risks, charges and expenses associated with the annuity, its investment objective and its investment options. You can request a prospectus by calling 1-888-311-4887 or by visiting www.schwab.com/annuity . The contract value of a variable annuity may be more or less than the premiums paid and it is possible to lose money.