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3 factors to include in any retirement income conversation
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By 2030, all baby boomers in the U.S. will be 65 or older1. Given economic changes, market volatility and health care costs, some people’s future financial security may be at risk. How are you ready to help?
At this historical period when everyone in the baby boom generation will be old enough to retire, some people may need to fine-tune their long-term financial strategy to account for changes in the economy, rising health care costs, market volatility and a potentially longer than-expected retirement. You can lead the charge by helping your clients shift to a financial strategy aimed at building financial security for retirement.
Assessing retirement readiness with these factors in mind
As you evaluate a client’s financial readiness to retire, one or more of these factors could help lead the conversation:1
1. Retirement’s rising costs
For most people, funding a comfortable retirement falls on their shoulders. With fewer pension plans and higher costs of living, over half of baby boomers and Gen Xers are concerned about outliving their retirement savings.2
At the end of 2024, Americans ages 45 to 54 had $188,643, on average, saved for retirement in their defined contribution plans.3
Social Security alone may not be enough to supplement their other income sources potentially leaving them without enough money to maintain their pre-retirement standard of living. Asking clients these spending questions could offer more insight for creating strategies to help their income keep up with higher costs in retirement, like health care and inflation.
Q. Do you want to stay in your own home, downsize or move somewhere different?
Keep in mind: Taxes and maintenance costs may rise over time, so the amount budgeted to stay in a home today will likely be different in the future. Downsizing could lower monthly payments, taxes and other housing costs (depending on location and the housing market). For clients who want to retire in a different location, a move and the costs that go with it may be a financial strategy worth discussing.
Q. What are your planned expenses, including mortgage, monthly bills, taxes, etc., in retirement?
Keep in mind: Housing costs can eat up a significant portion of a monthly budget. Some retirees who plan to age in place will have paid off their mortgage, removing a large monthly expense. But for others, a housing payment will be part of their budget, along with other monthly bills, taxes and retirement expenses.
Q. Is there plenty of wiggle room in your budget right now or is it stretched?
Keep in mind: Although some costs in retirement, like health care, are beyond control, they can stress a retirement budget. Be sure to remind clients budgeting for retirement to account for inflation to help cover future planned and unexpected expenses. Sharing this retirement budgeting worksheet with your clients can help them plan for the retirement they want while comparing their needs, wants and wishes to their expected income.
2. Planning for a lengthy retirement
Along with rising taxes and inflation health care advances are helping people live longer. For clients who could outlive life expectancy projections, retirement may be longer-thanplanned. Living longer means a retiree’s money may not last as long as expected, especially if there’s a sizable gap between retirement income and expenses.
Some retirees want a more active, fulfilling lifestyle, unlike previous generations that may have considered retirement as a time to slow down. According to the latest figures, Americans ages 65 and over participated in leisure and sports activities for about 7 hours a day, on average.4
Even the way clients approach retirement conversations with their financial professional may be different. In the past, those discussions may have focused on how much monthly income clients thought they would need to maintain their standard of living. Now, after a decades-long career, retirees may need more money to pursue their passions.
Keep in mind: A retirement income strategy conversation must:
- Go beyond how much money clients think they’ll need on the day they retire
- Factor in the costs of a long, active retirement
- Discuss all retirement income sources so your clients can retire to their best life
- Inspire clients to think about their “future selves”
3. The benefits of a diversified portfolio
Several factors may put financial security for some retirees at risk. A diversified portfolio is crucial in helping your clients enjoy retirement rather than just survive it. For example, when there’s a balance of stocks, bonds, commodities and fixed income solutions, different areas can help offset a loss when one or more declines during volatile market conditions.
Did you know? 66% of sandwich generation survey respondents agree more income help them feel more confident in supporting their family
Products like fixed indexed annuities (FIAs) and registered index-linked annuities (RILAs) could play an important role in a client’s financial strategy. How? They can both help manage risks, offer growth potential and create their own sort of retirement paycheck that provides a guaranteed lifetime income stream to help cover expenses.
Keep in mind:
- With a FIA’s zero floor, your client will never earn less than 0 percent interest, even if the market goes down. Many FIAs also offer optional lifetime income riders.
- RILAs provide a level of protection, up to a buffer rate or beyond a floor rate, that shields a portion of a client’s retirement savings from loss. By taking on more of the risk, there’s opportunity for clients purchasing a RILA to see higher growth.
Lead the charge — help clients reach their goals for a remarkable retirement
Nine in 10 adults aged 40 to 59 who support an adult child and an elderly relative agree a financial professional has improved their financial outlook.
With a surge of new retirees leaving the workforce in the next few years, some people may feel uncertain about their future financia security. Others may not know what steps to take. If any of your clients feel this way, you can help them rethink how to save for retirement and address potential income gaps after looking at their future income sources like Social Security, pensions or personal savings.
Did you know? Retired survey respondents who own an annuity say they’re more satisfied with their lives than those without one?
With your expertise and retirement product lineup, you can help make a difference in your clients’ lives. In addition to these tips, our Retirement Risks Toolkit and Understanding Consumer Behaviors Toolkit are full of valuable tools and resources that can help enhance your interactions.
Insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.
1 “Projections for the United States: 2023 to 2100.” United States Census Bureau. Revised February 12, 2025.
2 ”Protected Retirement Income & Planning Study, Alliance for Lifetime Income, ALI-IPSOS, 2025.
3 ”How America Saves 2025.” Vanguard.
4 American Time Use Survey, 2024 Results, Table 11A. Bureau of Labor Statistics.
