five reasons to call clients

Five reasons for financial professionals to call their clients about retirement plans right now

Many Americans could use advice from a professional about how to navigate their finances. The financial aftershocks of the pandemic are still affecting both people who have retired and those in the workforce.

In the latest Retirement Risk Readiness Study, 63% of non-retired respondents said they fear running out of money more than death, while just 46% of retirees had the same fear. Both groups would benefit from the guidance of a financial professional to take the necessary steps to mitigate risks to their retirement security.

The new study from Allianz Life surveyed three categories of Americans to get different perspectives on retirement: pre-retirees (those 10 years or more from retirement); near-retirees (those within 10 years of retirement); and those who are already retired.

Here are five reasons why financial professionals should call their clients now.


Some could use a pep talk – others may be overconfident

People who are more than 10 years from retirement are feeling less confident about retirement than they did last year. While 75% of pre-retirees said they feel confident in being able to support their future financial goals last year, just 68% said the same in 2022. These younger people could be in need of support from a financial professional who could assess their financial readiness and provide ideas for how to improve security.

Meanwhile, retirees could be overconfident about their financial futures. The vast majority – 89% – of retired respondents said they feel confident about funding their future financial goals. This could lead to retirees potentially neglecting their finances and missing out on opportunities to ensure their financial futures.


Financial decisions put their finances at risk

People who have yet to retire made financial decisions during the pandemic that could put their financial futures at risk. Some people said they took money out of investment accounts or reduced how much they saved in retirement accounts. More than one-third of respondents said they took money out of their investment accounts or reduced the amount they were putting into retirement accounts. They could need help getting their spending, saving, and investing back on track.


A job change is coming

Your clients could be mulling a job change that would affect their finances. Four in 10 people reported that they are likely to take a new position at their current company, and approximately three in 10 said they may leave their current employer for a new company or go into business for themselves. A job change can significantly affect someone’s financial picture. They may be worrying about how to make short- and long-term plans.


Inflation is causing anxiety

Inflation is causing anxiety, especially because incomes are not keeping pace. Most Americans – 78% – said they expect inflation to get worse in the next 12 months. Nearly 60% of people in the workforce and 40% of retirees said their income is not keeping up with the rising cost of living. They need a financial professional’s insights into how to protect their assets from the threat of continued inflation.

How are they coping with these challenges?

  • Find a job that pays more – 53%
  • Reduce spending on necessities – 52%
  • Dip into savings to make ends meet – 49%
  • Stop or reduce education savings (among those with children) – 52%
  • Stop or reduce retirement savings – 45%

They want help from a professional

Nearly half of people more than 10 years from retirement (48%) said they would like to make a formal financial plan with a financial professional. The same amount said they are interested in purchasing a financial product that provides a guaranteed source of retirement income – such as an annuity.

This is an opportunity for financial professionals to check in and make sure their clients’ plans are adapting to either changes in the market or changes to their circumstances.

*Allianz Life Insurance Company of North America conducted an online survey, the 2022 Retirement Risk Readiness Study, in February 2022 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k.

Allianz Life Insurance Company of North America does not provide financial planning services.

Products are issued by Allianz Life Insurance Company of North America.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.