With 10,000 baby boomers turning 65 daily for the next 18 years, retirement planning is becoming a greater priority for financial advisors, according to a new LIMRA survey of 1.042 advisors.
A Millionaire Corner first quarter wealth level study finds that just about one-third of households with a net worth between $100,000 and $1 million (not including primary residence) feel they are not saving enough to meet their retirement income goals. They are also the least likely across wealth segments to be confident they will have sufficient retirement income to live comfortably (57 percent vs. 79 percent of Millionaire and 86 percent of Ultra High Net Worth households).
LIMRA’s survey found that for 4 in 10 advisors, retirement planning comprises half of more of their business.
What are their clients’ most pressing retirement income concerns? Sixty percent said that outliving their money tops, while more than half listed paying for long term care costs.
Just over three-quarters (76 percent) of advisors who offer retirement planning have instituted changes in the last year to make it more of a priority with clients. Forty-four percent have introduced new products or services, while 37 percent have added more components to financial planning and advice-giving capabilities. Nearly a third (32 percent) have obtained special training, while 28 percent have extended their network of relationships with lawyers or other professionals.
But retirement plans play the most critical role in most advisors’ practices, LIMRA found. Six in 10 said they they are well received by their clients (earlier LIMRA research showed that only 3 in 10 pre-retirees—those within five years of retirement—who have worked with an advisor have one).
For the advisor, the formal written plan offers a variety of benefits to their clients as well as their overall business. More than 8 in 10 said that a retirement plan is a discussion starter about product solutions, while 82 percent said it enhances understanding of a client’s goals.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.