This increasing interest in income in retirement will create a vast opportunity for financial advisers, John Hancock Financial Network said. A full 90% of investors said it would be important to have a retirement income plan in place by age 60.
Nearly 70% (69%) intend to have a retirement income plan in place by age 60, but only half would work with their existing financial professional to develop it, according to the survey of 768 investors, conducted by Mathew Greenwald & Associates for John Hancock. To qualify for the study, respondents needed to participate in their household’s financial decision-making process, have a household income of at least $75,000 and assets of at least $100,000.
Surprisingly, 38% of those who intend to have a retirement income plan by age 60 think they could develop it on their own; 12% would use a new financial professional, and 4% would seek a retirement income specialist.
“The study shows there is a significant opportunity for financial professionals to grow their business,” said Bruce Harrington, vice president, sales and business development, John Hancock Financial Network. “With nearly 60% of non-retired investors who use advisers saying they felt it would be important to have special credentials in retirement income planning, we think advisers who have this additional training have a clear competitive advantage and should do well.”
Last year, John Hancock developed Retirement Ready for affiliated financial professionals, to help them walk clients through retirement income issues and create a customized strategy.