The Alliance for Lifetime Income has created a presentation, “Three Keys to Income Planning and Answering, ‘What’s Next?,’” on how to create income options in retirement, designed for financial professionals to show to clients and prospects.
“Americans spend decades working, saving and anticipating retirement,” says Jean Statler, chief executive officer of the Alliance. “But many people have no clear idea of how their savings will reliably support them in their post-work years.”
The presentation shows people how to take the initial steps to analyze their situation and start to plan how they will cover their basic expenses in retirement. The presentation introduces viewers to the exercise of creating an “income hierarchy analysis” to understand how they can create income to cover their needs, wants and wishes in retirement. The presentation takes them through 60 different expenses they are likely to face in retirement. They choose which are important to them in order to decide how much protected income their retirement plan should include.
Statler adds that with so many Baby Boomers retiring or planning to do so, they have a real need to understand income planning.
The Alliance conducted a survey of pre-retiree workers in 2019 that found 80% did not have a financial plan.
This year, in March, April and June, the Alliance conducted yet another survey that found, due to the coronavirus pandemic, 56% of respondents were considering a change to their retirement plans.