If clients have a safety net of one to five years of retirement income, they wouldn’t be worried in this environment, according to CNBC’s resident retirement expert.
Tag: Retirement Income
A new white paper helps advisers ensure their clients' retirement plans are safe from the declining housing market.
Think rising health care costs or the potential decreasing of Social Security benefits is the biggest threat to your client’s retirement security? You’re in the minority.
Despite the increased focus on the need to capture Baby Boomers’ assets post-retirement, defined contribution plan service providers are largely unsuccessful at retaining participant assets after retirement, according to research from the Diversified Services Group (DSG).
TowerGroup says advisers should use a “holistic″ approach to tap the lucrative market of providing retirement income services to affluent investors.
Nearly half (46%) of pre-retirees and more than one-quarter (28%) of retirees who use financial advisers surveyed reported that neither they nor their adviser have developed a formal retirement income plan.
As Baby Boomers retiree, advisers and broker-dealers must decide how they will differentiate themselves and deliver an efficient retirement income program.
“It would be a real shame if, instead of physical limitations, we ended up with financial limitations in our old age,″ commented Matthew Greenwald of Mathew Greenwald & Associates.
Sixty-one percent of financial advisers responding to Schwab Institutional's most recent Independent Advisor Outlook Study said having sufficient retirement savings to maintain their desired lifestyle is a constant concern of their clients.
In-plan investments that provide guaranteed income should be used as part of an overall allocation strategy, garnering only about 15% to 30% of a deferral, said Joseph Eck, vice president of the institutional solutions group for The Hartford.
The best reason to buy immediate annuities is guaranteed income, but the lack of growth and flexibility opportunities remains a downside.
Advisers who help clients put together a formal retirement income plan end up with more assets – and more referrals - from more satisfied customers.
Adopting a process-centric approach to retirement income management will provide better service to clients and will lead to faster asset growth for the adviser, along with higher productivity and greater client retention.
As retirement looms, products to help savings last come to the fore.
James McCarthy, Managing Director, Retirement Solutions at Morgan Stanley said there are two approaches to retirement product development.
The good news is that retirees appear to be quite content with their existing adviser relationships — all the more reason for advisers to establish those connections prior to retirement, according to a new report.