3 Reasons Your Clients’ Happiness Depends On A Retirement Income Plan

 Only 27% of baby boomers feel confident they’ll have enough money for their retirement years and this number is decreasing every year.  For someone who’s spent decades working towards the once -inevitable reprieve and luxury of retirement, the idea of postponing or foregoing the fun and relaxation they dreamed of can be devastating.  As boomers get older and closer to the possibility of retirement, they’re becoming increasingly concerned about how they’ll survive on the savings they’ve accumulated, let alone how they’ll survive comfortably, stress-free and be able to live their elderly years enjoyably.  As the old adage goes, money can’t buy happiness, but we all know it sure can make life a lot easier.

For any financial advisor (FA) interested in retaining his book of business, helping clients plan for retirement must be a priority. It’s no longer enough to just help clients accumulate wealth- instead, an FA must be able to help clients create a plan for converting those assets into an income stream that meets the unique needs and lifestyle expectations for their retirement years.

Here are 3 reasons your clients’ happiness depends on your ability to provide them with a comprehensive retirement income plan:

1. A Retirement Income Plan Is Peace of Mind

Life is stressful.  It doesn’t matter how much money you have, nobody is immune to life’s difficulties.  Whether it’s a sick friend, career stress, family turmoil, marital strife or even just home repair expenses, your clients have enough to worry about without the concern of retirement income.  Wouldn’t you love to give your clients a feeling of calm and confidence amidst the reality of their stresses?  Your clients are working with you because you’re the expert - you’re offering a service they need and can’t do on their own.  All of this positions you as a potential super-hero, a rock and a shield against life’s uncertainties and troubles.  Are you prepared for this massive responsibility?  Those who accept the challenge and deliver a plan for retirement success will enjoy the benefit of clients who won’t make a financial move without them. In other words, a client for life.

2. Reality Is Refreshing

Sometimes ignorance is bliss, but never when it comes to retirement income. There isn’t an advisor on Earth who wants the burden of disappointed clients. So what happens if your clients spend their working years believing retirement will be filled with frequent world travel, only to learn their savings won’t support more than an annual vacation to the nearby beach?  Unrealistic expectations among clients are common and you have a responsibility to help clients understand the reality of their situations.  If you begin talking with clients about retirement and develop an income plan during their working years, you remove the element of fantasy and create a relationship based on fact.  You’re not a miracle worker and shouldn’t be held to such unattainable standards but you are, however, a trusted advisor who owes his clients the benefit of smart, transparent advice and guidance. Research by Spectrem Group shows 23% of investors have left advisors who failed to provide good advice- something which is completely within your control. An understanding of the real picture and plan to help optimize that view provides clients with clarity and establishes a dynamic of trust that will ultimately keep them happy and help you retain them through their retirement years.

3. Planning Ahead Affords Options

Those who begin saving early in life enjoy the financial benefits of compounding and time in the market.  Similarly, those who begin planning early enjoy the luxury of options later in life.  Waiting to address an income plan until the final years before retirement puts your clients at a significant disadvantage. By then, it’s often too late to make any kind of impactful lifestyle or investment adjustments.  Planning ahead creates possibilities.  Maybe a client with frivolous spending habits is determined to purchase a snow-bird home in Florida for those cold, winter retirement years but won’t be able to do so unless she increases her 401k contributions by 8% for at least 10 more years.  Thinking about retirement lifestyle expectations well before retirement not only lets you provide sound advice but also gives you ample time to develop and propose the financial options your clients deserve. 

Happy clients are satisfied clients and satisfied clients are loyal.  Client loyalty should drastically reduce the level of prospecting required to sustain a successful business, enabling you to focus on helping clients accumulate assets, protect their wealth and of course, create a successful retirement income strategy.  Are you interested in being among the top retirement income planners in the country?  Download our free guide on 10 action steps you can take to become one of the elite.