A Tidewater expert recently welcomed a Brokers International annuity specialist to break down one of the most important topics in today’s financial landscape: annuities for growth vs. income.
The conversation focused on helping agents better understand how to align annuity strategies with client goals – whether that means building long-term wealth or creating dependable retirement income. Through practical guidance and real-world examples, the session highlighted how choosing the right approach can make all the difference in delivering meaningful client outcomes.
Understanding the Core Questions: Growth or Income?
One of the biggest takeaways from the webinar is simple but critical:
The real question isn’t which annuity is better. It’s what problem you’re trying to solve.
Annuities are not one-size-fits-all. Just like different vehicles serve different purposes, annuities are designed to meet specific financial goals, such as:
- Growth (Accumulation): Building wealth over time
- Income (Distribution): Creating reliable, predictable retirement income
Agents must first identify the client’s objective before recommending any product.
The Two Types of Annuity Clients
1. Growth-Oriented Clients
Growth clients are typically:
- 5-15 years from retirement
- Focused on growing and protecting assets
- Concerned about market volatility and loss
These clients often ask:
- “How can I make my money work harder?”
- “How do I protect what I’ve already built?”
For these individuals, Fixed Index Annuities (FIAs) offer:
- Principal protection
- Market-linked upside potential
- Tax-deferred growth
Best use: When income is already covered (ex: Social Security), and long-term growth is the priority.
2. Income-Oriented Clients
Income clients are:
- Near or in retirement
- Focused on reliable cash flow
- Concerned about outliving their money
They’re more likely to ask:
- “Will my money last?”
- “How do I replace my paycheck?”
For these clients, solutions often include:
- FIAs with income riders (GLWB)
- Immediate annuities (SPIAs)
- Other income-focused products
The standout features:
- Guaranteed Lifetime Withdrawal Benefit (GLWB): provides income for life, even if the annuity value is depleted
Best use: When there’s a gap between income sources and monthly expenses.
Why Discover Matters More Than the Product
One of the most important lessons from the session was that too many agents lead with a solution before identifying the problem.
Instead of jumping into product features, successful agents ask better discovery questions, such as:
- When do you plan to retire?
- How would a market downturn affect you?
- Do you worry about running out of money?
- What income sources do you currently have?
The better the questions, the better recommendations you can make.
Common Mistakes Agents Should Avoid
1. Assuming Every Client Needs an Income Rider
Not all clients need guaranteed income. Adding a rider without purpose can increase costs, limit growth potential, and misalign with client needs.
2. Focusing on Features Instead of Outcomes
Clients don’t necessarily care about participation rates, caps, or percentages. They care about confidence, security, and retirement readiness.
Clients aren’t buying annuties, they buy peace of mind and outcomes.
3. Overloading Clients with Technical Details
Instead of saying “this is a 7% roll-up…” say “this strategy helps grow your future income.”
How Top Agents Position Annuities
Top-performing agents shift their messaging from technical to meaningful.
| Instead of This | Say This |
| “55% participation rate” | “You can benefit from market growth with downside protection” |
| “7% roll-up” | “This grows your future income potential over time” |
| “Income rider” | “This creates a paycheck you can’t outlive” |
Focus on benefits and outcomes, not mechanics.
Real-World Scenarios
Example 1: Susan (Age 58)
- Has pension, savings, and Social Security
- Main concern: market risk
Best solution: Growth-focused annuity (no income rider needed)
Example 2: Tom & Mary (Retired)
- No pension
- Need $2,500 a month
Best solution: Income annuity with a rider to fill the gap
Tools to Help Agents Grow
The webinar referenced helpful resources available to Tidewater agents to help with annuity growth.
Accelerate Social
- Automated email and social media campaigns
- Promotes financial topics like annuities and long-term care
- Helps generate inbound interest and client engagement
Log in to Accelerate today!
Life and Annuity Resource Center (LARC)
- Training modules
- Product education
- Ongoing expert support
Designed to help you build confidence and expand your annuity business.
Explore the LARC today!
Final Webinar Takeaways
A few final reminders for your next annuity conversation include:
- Start with the client’s goal, not the product
- Growth and income solve different problems
- Use discovery questions to guide the conversation
- Position annuities around outcomes, not features
As emphasized throughout the session, success with annuities comes down to clarity. When you identify the right problem, the right solution becomes obvious.
What’s Ahead
Another training session is scheduled for July 22nd, where we’ll take a deeper dive into tools like Accelerate Social and LARC. Registration details will be shared soon, so be on the lookout. In the meantime, mark your calendar so you don’t miss the opportunity to continue strengthening your annuity knowledge and sales confidence.
As always, reach out to the Tidewater team for support as you expand your portfolio and better serve your clients through life and annuity solutions. Be sure to also explore our full range of annuity products to help meet your clients’ evolving needs.
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