- 2-Minute Article
The Reality of What Retirees Aren’t Talking About
Topics to discuss with your clients as they near retirement.
Research shows that many people getting close to retiring haven’t yet made crucial decisions about how to draw income in their retirement or address the financial risk of long-term care. That’s where you come in. You may have already spent years helping your clients plan for retirement, and now you’re in a position to help them navigate the early stages. Here’s how you can frame the conversation.
What should you be saying?
A recent study checked in with over 300 people within a year of their planned or actual retirement date and asked where they were in their final retirement planning or how retirement was going so far.1 The results were revealing and provide insights you can use to have better discussions with your clients. Consider these topics for your next conversation:
- Planning: Only one quarter of those nearing retirement have a written retirement plan — the rest need your guidance in creating one. And those with plans may benefit from revisiting to make sure it still reflects their needs.
- Saving: One quarter of pre-retirees still haven’t calculated how much they need to save. Help make sure they’re on track – and allow them to enter retirement with more confidence.
- Health care: Only a third of pre-retirees discuss health options with advisors and just one quarter discuss long-term care. With major financial implications, that’s a huge topic for discussion.
- Expenses: Two-thirds of retirees didn’t get help from their advisors when estimating expenses in retirement. This is an easy conversation that provides an entry point to discuss how they’ll generate income for those expenses.
- Income: More than half of pre-retirees have yet to decide how they’ll draw income from their investments, and they could use your expertise in creating a strategy to do so most efficiently.
- Social Security: Three-fifths of retirees didn’t consult an advisor about when to claim Social Security. Give them guidance on how Social Security fits in with their other income sources.
When should you speak up?
Based on our respondents’ activities, there are several highly critical and influential time frames surrounding a client’s retirement date. Here’s what to say when.
- 1 year before retirement: Estimate and confirm expenses, discuss insurance options, decide when to draw Social Security
- 3 months before retirement: Double-check the plans, and make sure the client is confident and comfortable with no longer working
- 2-3 months after retirement: Check in and see how they’re enjoying retirement and if they have any questions about their plan
- 10 months after retirement: Revisit key decisions and determine any changes
These facts and timeframes should help provide a roadmap as to when and how to have these critical conversations and build trust with your clients.