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Address one of your clients鈥� biggest sources of stress
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鈥淲ill I have enough income in retirement?鈥� It鈥檚 a valid concern, especially when factoring market volatility, inflation and general economic uncertainty.
3 steps to help clients feel more financially confident about retirement
1. Learn to manage market volatility risk.
Discover ways to help reduce risk exposure while maintaining growth potential.
Making sure their money lasts is a top retirement planning priority for many Americans. When an economic downturn erases gains made over time, people closer to retiring have less time to recover from the loss, and that could put their financial security in retirement at risk. Fortunately, innovations in the annuity industry specifically help address common investing risks like market volatility. For example, incorporating a fixed indexed annuity (FIA) with volatility control indices into a client鈥檚 retirement plan may help smooth out market ups and downs, helping ease anxiety about one of the most common financial risks in retirement 鈥� outliving your money.
2. Understand how inflation can impact spending.
Consider how much a retiree鈥檚 costs each year might be in five, 10, or 20 years, assuming varying rates of inflation.
With 4 percent annual inflation, clients retiring in five years could end up spending over $60,000 a year for the same expenses they鈥檙e paying $50,000 a year for now. At the same annual inflation rate, the expenses for clients 20 years from retirement could more than double what they spend now. Some long-term financial strategies may need fine-tuning to help account for higher costs and other retirement risks. Current market uncertainty and inflation have many people looking for ways to help protect and grow their savings, which they鈥檙e finding with different kinds of annuities, including FIAs with custom indices.
These three questions could help you talk with clients about potential adjustments now that could help their savings last in retirement.
3. Review future income sources.
See how savings and investments, Social Security, annuities, and other financial sources, such as possible part-time work, can be combined to provide the retirement income needed for a potentially long life.
One of the biggest questions facing retirees and those close to retirement is, 鈥淲ill I have enough money to retire?鈥� How will your clients鈥� retirement plans stand up as they move from asset accumulation to decumulation? Sharing this can help them inventory their income sources, consider expected future expenses and create a sound retirement income strategy.
An increase in people saving for retirement who don鈥檛 expect to have enough money in retirement comes specifically from adults aged 50+.*
Addressing retirement anxiety
As a financial professional, you can help your clients feel confident in their retirement strategy and prepare for the road ahead. This infographic provides three simple steps that clients can use to help ease anxiety about retirement income:
By addressing ideas to help your clients weather fluctuating markets, consider the impacts of inflation in retirement and plan an income strategy to help their money last, you can help boost their confidence for a remarkable retirement.
Insights on 麻豆传媒 Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.
*鈥濃�� AARP.org. Accessed May 2024.
