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Financial literacy for your clients in their 60s and 70s

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As your clients age, the financial plans they made earlier in life should be coming to fruition. If they planned accordingly, they should be on track for their goals, including the biggest: retirement. Even if they are about to start the next chapter in their lives, that doesn’t mean they are done with all of their financial planning — there are still details that will need their (and your) attention.

By implementing thoughtful education into discussions, you can help clients in their 60s and 70s put their financial histories and futures into perspective. Here are five things you should make sure they know.

1. Reevaluating financial plans for retirement

As your clients reach retirement age, they may or may not be ready to leave their earning years behind them. If they are pre‑retirement, there are some key factors that you may want to discuss. Make sure they have calculated all their income streams before they finish working, including Social Security and any income their partners or families may bring into the household. For clients who just retired or are thinking of a second-act career, an evaluation is still a valuable exercise.

2. Develop a budget and simplify costs

Retirement finances can seem hypothetical in the early stages of planning and, for many of your clients, they may seem that way right up until their last work day. You can help establish a budget that takes into account all incoming and outgoing funds and helps cut any unnecessary costs. Explain how budgets can be simplified — and safeguarded against fraud — through the automation of accounts, such as monthly transfers and drawdowns tied to mortgage or utilities payments. This is a great opportunity to introduce how an annuity can help bridge any gap in post-retirement income and expenses.

3. Navigating the costs of health care

Health care costs continue to rise in retirement, with estimates of up to $1,572,278 needed, in future dollars, for total lifetime health care costs. This amount includes Medicare, supplemental insurance premiums, dental insurance and out-of-pocket costs. For couples, make sure they know that any change in health may affect who manages the family finances. Share these five tips for saving on health care costs.

4. Philanthropic and giving goals

Charitable giving may be important to some clients. Ask them whether they have a line item in their budget for giving to important organizations or to family members. If they are interested, make sure you explain that they should consult their own tax and legal accounting professionals before engaging in any transaction.

Estate planning

Your older clients will also naturally be thinking about their estates and beneficiaries. Having a smart estate plan is essential for everyone — regardless of assets, age or income. Setting up a clear path for heirs can help make sure your clients’ wishes are carried out and can make things much easier at that difficult time. Here are some tips on estate planning 101.

Two things you can do today

  1. Make a list of your clients who are getting ready to retire and start scheduling calls with them to discuss retirement budgets.
  2. For your clients in their 70s, start introducing legacy planning into your regular meetings.

 Insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.