Improve Your Financial Advisory Business by Helping Retirees with Their No. 1 Retirement Risk
Retirees often have a distorted view of the risks they face during retirement, as shown by a recent study from the Center for Retirement Research at Boston College. The analysis highlights the disparity between perceived and objective retirement risks. Advisors can play a critical role in helping retirees understand and navigate these risks more effectively.
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Identifying the Top 5 Retirement Risks
This study delves into five key areas of risk for retirees, comparing the subjective viewpoint of retirees with the actual financial impact. These risk areas include longevity risk, market risk, health risk, family risk, and policy risk. The study revealed that the top risk for married couples and single men is longevity, followed by market risk, and then health risk. Family risk ranks fourth, with policy risk finishing last.
Perceptions vs. Reality of Retirement Risks
Despite the objective ranking of risks, retirees often have a skewed perception of the dangers they face. For example, while objective analysis places longevity risk as the top concern, single men perceived market risk as their primary worry. Retirement planning can benefit from aligning retirees’ perceptions with the actual risks they face, with a focus on strategies to mitigate these risks.
Implications for Financial Advisors
Understanding the discrepancy between retirees’ subjective perceptions and objective risks is crucial for financial advisors. By addressing retirees’ concerns and guiding them towards appropriate risk-reduction products and strategies, advisors can significantly improve their clients’ financial well-being.
Growing Your Financial Advisory Business
SmartAsset’s SmartAdvisor platform offers opportunities for financial advisors to connect with clients nationwide. As advisors adjust to remote work and virtual meetings, leveraging this platform can help expand their reach and grow their business. Additionally, staying informed about industry news and trends through SmartAsset’s email updates can further enhance an advisor’s ability to serve their clients effectively.
In conclusion, by addressing the disconnect between retirees’ perceived and actual retirement risks, financial advisors can play a vital role in helping retirees navigate their retirement with confidence.
