Helping clients plan for retirement is a long journey filled with hurdles to overcome. But a solid financial strategy that considers many of the risks that can derail a strategy is a key way to help clients achieve the retirement they have always dreamt about. Of course, part of the challenge is anticipating all of those risks.
Our recent Retirement Risk Readiness Study provides a deep dive into how Americans view some of these risks, and how those risks may or may not be impacting the way they think about and plan for retirement.
Expectations about when retirement will start, how long it will last, and how time will be spent should all be part of the planning conversation. After all, the study found that half of all Americans retired earlier than expected – often for reasons outside of their control, such as being laid off or healthcare issues.
But for things like market volatility (which has been near constant over the past few years) or inflation (which no one can avoid), your clients might not be thinking about how to address these risks. For example, more than half of all respondents (59%) said they are worried that the rising cost of living will prevent them from enjoying their retirement, and only around two in 10 are having discussions about how inflation can prevent them from enjoying their retirement.
This is particularly true for rising healthcare costs, which many people don’t consider as it pertains to a long retirement. The study found that nearly half (48%) of current retirees say they have no idea how much they spend on healthcare in retirement.
The good news is, proper planning with the assistance of a financial professional can help your clients start to think about these risks and how they can mitigate them.
If any of these topics seem like discussion points that your clients could benefit from hearing more about, download our new executive summary.
By starting the planning process early, you can help clients not only understand these major risks to their retirement security, but also create a thoughtful approach to addressing them.