Retirement Planning

Most Americans are not taking the steps they need to prepare for a retirement that’s anywhere close to the one they want. A recent survey found that 78% of Americans were “extremely” or “somewhat” concerned about affording a comfortable retirement.1 How can that number be so high? It’s simple. Many people don’t understand what they need to do, so they just hope the problem will fix itself. But kicking the can down the road isn’t a good strategy. And even though some folks are working longer, ultimately the reality of living a life without a paycheck will catch up with them.

It’s all about stages.

When it comes to retirement planning, we have identified three distinct retirement stages. Each stage has its own unique characteristics, further accentuated by each client’s personal circumstances.

Accumulation

Your client has more than 10 years left before retirement. At this stage, most people are

concerned with accumulation—saving enough to make sure they can afford to retire, and

protecting their family with life insurance. Other concerns may include:

Saving for retirement.

Looking toward the future.

Saving for education.

Saving for emergencies.

Pre-retirement

Your client has 10 years or less before she plans to retire. At this stage, her biggest concern may be shifting assets; converting and consolidating her various savings vehicles into a steady stream of retirement income. Other concerns may include:

Preparing for less income from work.

Understanding income sources. Making choices and managing uncertainty.

Understanding health care and protection needs.

Consider catch-up contributions

Retirement

Your client has already retired. His primary concerns probably include income management and wealth transfer. Other concerns may include:

Living on existing assets/fixed income.

Living with increased health care needs.

Adjusting goals to fit financial and health concerns