For the next 20 years, an average of 10,000 Baby Boomers will retire every day. It is not just the accumulation of assets that consumers need, according to a study by the news source InvestmentNews and The American College.
“For far too long, the financial services industry has concentrated its efforts on investors accumulating wealth,” said Laurence Barton, president and chief executive of The American College, a nonprofit educational institution for financial services.
Advisers need a reliable planning approach to navigate the complexities facing consumers seeking to create a sustainable lifetime stream of income during retirement, according to the study of more than 670 respondents, which was conducted online.
“Retirees count on their advisers to help them achieve a sustainable income in retirement despite all of the risks of market uncertainty, rising health care costs, inflation and increasing longevity,” said David Littell, professor at The American College.
Some of the survey’s findings include:
• The biggest challenges for advisers are having a systematic approach to planning, and choosing the strategies and products to generate lifetime income;
• The most difficult risks to manage are market volatility, longevity and rising health care costs;
• Ninety-three percent of respondents feel most advisers need to know more about retirement income planning;
• Sixty-eight percent believe there is a need for a serious professional designation to retirement income planning; and
The study follows the recent launch by The American College of its Retirement Income Certified Professional (RICP) curriculum and designation program.
The survey findings are available here.