Press Release

Retirement Income Product Concept Tests
Overlay Management Resonates Highest with Consumers


Today FUSE Research Network and Mast Hill Consulting announce the release of highlights from their latest consumer tests of new retirement income product concepts. The research, conducted among 1,100 crash-aware pre- and post-retirement investors in October 2008, explored three product concepts: Multi-Account Income Optimizer, Employer-Sponsored Personal Pension, and Income Replacement Funds. Investors were presented with product concepts written in consumer-friendly language, and asked to evaluate the overall concepts as well as a variety of product attributes. The full findings are available as part of the study, Consumer Insights on Retirement Income: The Keys to a Competitive Advantage in Retirement Solutions.

“Many firms are working to develop new retirement products, and to better position the ones they already have. The goal of the product concept tests is to help clients optimize their product development pipelines, and to improve the marketing of current products,” explains Laura Varas, president of Mast Hill Consulting. “Product management and development is an important part of the retirement income puzzle, because products can codify and scale best practices.” The study also recommends best practices for positioning products within the context of an overall retirement income plan.
Key findings include:
  • The Multi-Account Income Optimizer (Overlay Management Solution) scored the highest among the three product concepts tests. The survey group especially liked generating income across multiple accounts, minimizing taxes, and using technology to maintain the retirement plan.
  • In the case of employer-sponsored pension plan, 58% of respondents liked the idea of receiving guaranteed income for life; however, 38% strongly disliked the fact that my employer provides this benefit.
  • Income replacement funds scored lowest at the overall concept level (37% favorability), although certain attributes and wealth segments responded favorably to the product. Nearly half of pre-retirees liked the overall concept (49% versus 27% for retirees), while the idea of being able to tap into capital in a controlled manner appealed to 64% of the mass market.
“The days of launching multiple product solutions with the hopes of one gaining scale have passed,” adds Mike Evans, president of FUSE Research Network. “We want to help our clients focus their limited resources on developing products that will resonate with advisors and investors and have the biggest impact on their business.”

The findings underscore the importance of tailoring product development and positioning to the preferences of target markets, as needs and reactions can vary substantially depending on investor age, employment status, and asset levels. “As with all the work we do at FUSE, our goal is to deliver the insight in a way that is tailored to the circumstances of the specific client firm,” says Neil Bathon, founder of FUSE Research Network.

About FUSE Research Network LLC

FUSE Research Network is a leading edge decision support firm that employs a highly refined market intelligence capability to deliver informed, decisive, and forward-looking guidance to firms in the asset management industry. While the industry is supported by dozens of strategic consultants and data providers, FUSE's positioning is firmly in the area of tactical execution. We are committed to delivering research-based client-specific recommendations that improve the productivity and effectiveness of the resources devoted to sales, marketing, and product management. The foundation upon which FUSE is built is as follows:

INNER WORKINGS OF FUSE

It is the goal of FUSE to develop a level of partnership with each client that transcends traditional vendor relationships. In order to achieve this, the day-to-day activities of FUSE are guided by the following principles:
  • Ardent Client Advocacy;
  • Absolute Candor &Objectivity;
  • Incisive &Tangible Guidance.
Our ability to adhere to these principles is supported by our commitment to constantly be looking for ways to improve our support offerings through ongoing feedback and innovation. In addition, we will take steps to insure that FUSE staff members are among the best informed in the business so as to achieve a thought leadership position on the behalf of clients. Finally, we will provide a superior level of client service that sets FUSE apart from all other decision support firms. It is important to note that the FUSE service model accepts the fact that we do not have all of the answers in-house but our network of contacts, which is one of the best in the industry, helps to insure that we will always know someone who does.

About Mast Hill Consulting, Inc.

Mast Hill Consulting, Inc. specializes in research and consulting in the financial services industry, with an emphasis on retirement and investments. MHC is especially known for its expertise in the retirement income marketplace, and speaks frequently with senior management, sales forces, and at industry conferences on consumer needs, competitive landscape and best practices in the retirement income market and related topics. MHC collaborated with FRC since 2004 as the Research Partner responsible for FRC’s acclaimed retirement income practice, authoring 6 advanced research studies, including:
  • IRA Rollover Dynamics 2008: Market Sizing, Benchmarks & Best Practices (2008)
  • Building & Positioning Retirement Income Solutions: Innovation from 2005 to 2007 & Beyond (2007)
  • Engaging PowerBoomers (2006)
  • Converting Retirement Income into Practice (2006)