Navigating the Retirement Crisis: A Revolutionary Approach for Financial Planners to Secure Elder Boomers’ Futures

In an era where the prospect of retirement is increasingly daunting, the findings of gerontologist Ken Dychtwald in his seminal book What Retirees Want paint a stark picture: the average cost of retirement now exceeds $1,000,000, yet the typical 60-year-old pre-retiree has saved a mere $135,000. This discrepancy signals not just a pending crisis but a potential epidemic of mass elder poverty.

The traditional financial services industry, with its myopic focus on asset management and accumulation, is ill-equipped to address this looming disaster. The prevailing FIRE (Financial Independence, Retire Early) movement, while aspirational, caters to a minority, inadvertently neglecting the broader societal need for sustainable retirement solutions. This model, driven by a quest for larger pension pots and recurring revenues, overlooks a fundamental principle: the imperative to provide clients with steady income streams well into their advanced years.

Our industry’s obsession with safeguarding the wealth of the affluent further exacerbates the disparity, leaving the “mass unwealthy” in a precarious position. Selling pensions to those least able to afford them does not create wealth; it perpetuates a cycle of hopelessness and financial strain.

Enter the GAME Plan: A Beacon of Hope

The GAME Plan (Goals, Actions, Means, and Execution) represents a paradigm shift in financial planning. By eliminating the conflicts of interest inherent in traditional financial intermediation, it reframes the conversation around retirement and wealth creation. This approach, grounded in the ICE (I’m Continuing Earning) movement, encourages a life of purposeful engagement and income generation, transcending conventional notions of retirement.

Our methodology doesn’t just examine the surface; it delves deep into an individual’s aspirations and potential, crafting a holistic financial strategy that encompasses more than the mere 5% of British wealth tied up in regulated investments, or the 5% tied up in tangible assets. By harnessing the power of intangible assets, entrepreneurial ventures, and the principles of Ikigai, we unlock pathways to sustainable livelihoods.

At the Academy of Life Planning, we’re not just planning for financial security; we’re fostering a culture of vitality, innovation, and resilience. Our strategies prioritise asset growth, diversification, and the transformation of active income into passive revenue streams, ensuring that your financial future is as robust and enduring as your aspirations.

A Call to Action for Progressive Financial Planners

The financial landscape is evolving, and so must we. If you’re a financial planner ready to break free from a failing system and embrace a future where your work fuels your passion, the Academy of Life Planning is your gateway. Our fast-track programme promises to redefine your career within twelve weeks, equipping you to guide others towards a retirement filled with abundance, purpose, and peace of mind.

Don’t wait for the industry to change; be the change. Contact us today and embark on a journey to redefine retirement and financial planning for the better.

Questions & Answers

Q1: What does Ken Dychtwald’s research reveal about the retirement savings crisis facing elder boomers?

A1: Ken Dychtwald’s research, as detailed in his book What Retirees Want, reveals a stark reality: while the average cost of retirement now exceeds $1,000,000, the typical 60-year-old pre-retiree has only saved around $135,000. This significant gap highlights a potential crisis of mass elder poverty, underscoring the urgent need for a new approach to retirement planning.

Q2: How has the financial services industry failed to address the retirement savings gap?

A2: The financial services industry has primarily focused on managing and increasing assets under management, often catering to the wealthiest individuals. This approach neglects the broader need for creating sustainable livelihoods and providing recurring revenues for the majority. By attempting to sell pensions to the “mass unwealthy,” the industry has not addressed the fundamental challenge of wealth creation, instead perpetuating a cycle of financial insecurity.

Q3: What is the GAME Plan, and how does it differ from traditional financial planning?

A3: The GAME Plan stands for Goals, Actions, Means, and Execution and represents a transformative approach to financial planning. Unlike traditional methods, which often involve a conflict of interest through financial intermediation, the GAME Plan eliminates this by focusing on the individual’s holistic financial well-being. It opens up discussions beyond investment products to include earning through passion and leveraging intangible assets, thereby addressing the needs of those looking to secure income into their later years.

Q4: Can you explain the ICE movement and its significance in financial planning?

A4: The ICE (I’m Continuing Earning) movement is a pivotal component of our approach. It emphasises the creation of sustainable income streams through work that individuals love, rather than traditional retirement. This movement encourages earning through “cashflow valleys” by engaging in fulfilling activities, ensuring that work feels less like a chore and more like a passion. It aligns with the idea that financial well-being and happiness can be achieved through continuous engagement and purposeful earning.

Q5: How does the Academy of Life Planning help individuals create sustainable livelihoods?

A5: The Academy of Life Planning employs a holistic approach to financial planning, looking beyond conventional investments and tangible assets. By identifying and leveraging productive (intangible) assets, entrepreneurial opportunities, and the Ikigai framework, we help individuals create sustainable livelihoods. Our strategies focus on optimising asset growth, converting income streams from active to passive, and investing in transformational assets to build resilience and ensure financial security.

Q6: Can you explain the importance of vitality and transformational assets in financial planning and how can I assess mine?

A6: Vitality assets are intangible assets that contribute to your overall well-being and longevity, such as health, knowledge, and social connections. These assets play a crucial role in ensuring that you not only live longer but also maintain a high quality of life in your later years.

Transformational assets, on the other hand, are resources that enable you to adapt and thrive amidst life’s changes. They include your skills, education, and personal growth experiences that allow you to pivot or transform your career and income sources over time.

Vitality and transformational assets are significant in financial planning because they can extend the duration and enhance the quality of income streams, especially as traditional sources of retirement income become less reliable. By investing in these assets, you ensure that you are not just financially secure but also capable of enjoying a fulfilling and resilient life.

To assess your vitality and transformational assets, it’s essential to conduct a holistic review of your life and financial plan. The London Business School offers an Asset Diagnostic tool that can help you evaluate these assets alongside your financial portfolio. This tool guides you through various aspects of your life, helping you identify areas of strength and opportunities for growth in both your vitality and transformational assets.

Q7: What advice would you offer to financial planners seeking to adapt to this new approach?

A7: For financial planners ready to embrace a more meaningful and impactful approach to retirement planning, we recommend joining our fast-track programme. This programme is designed to equip planners with the skills and knowledge to guide their clients towards a fulfilling retirement, leveraging the principles of the GAME Plan and the ICE movement. By focusing on creating sustainable income streams and addressing the holistic needs of their clients, financial planners can play a crucial role in revolutionising the industry.

These Q&As aim to succinctly address key aspects of our article and offer clarity on the innovative solutions proposed by the Academy of Life Planning for tackling the retirement savings crisis.