A review of a recent product development
Tag: Retirement Income
Micro plans offer good plan designs, but have room for improvement
Should retirement income be part of your practice?
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.