The Baby Boom generation, which dreamed of eternal youth, is now moving into retirement.
Boomers comprise 78 million Americans and they’re downing tools at a time of great change and uncertainty – quite a different environment to what most of their parents enjoyed. The old ways don’t seem to work anymore and meeting their retirement needs calls for a fresh approach.
Nowadays, company pension plans are out and the 401(k) rules the roost. This poses a problem for many retirees who aren’t aware of the attendant risks and how to plan for a potentially very long life. It may be particularly hard to respond nowadays, where investment opportunities are accompanied by extreme market volatility, political uncertainty and sweeping economic and technological change.
Financial advisors often find their clients relying on a tangle of investments to provide for their old age, a far cry from the age of a company pension and a nest egg in the bank account. The advisor’s task today is to rationalize the client’s holdings, clarifying issues so they can make sensible decisions to prepare for increased longevity and elevated medical expenses, among many other new retirement issues.
Many clients have worked multiple jobs over their careers and have myriad retirement accounts. Advisories should help customers roll these accounts together, particularly if the client has not yet retired. Unfortunately, this process is often arcanely complex. The industry needs to shed outdated practices (like demanding faxed copies of documents) to properly serve a 21st century clientele.
Likewise, the retiring baby boomers need access to relevant financial products. The old ways won’t do; easy-to-operate fixed annuities, economical ETFs and other modern products are in demand – make sure they’re readily on offer to your older clients.
For more information, please read:
Same Old, Same Old Won’t Work For Today’s Baby Boomers | Wealth Management