3-minute article

Helping baby boomers with changing retirement needs

As the baby boomer generation enters retirement, financial professionals are experiencing changes in client expectations. Long focused on accumulating assets, clients are increasingly seeking strategies that convert savings into income.

This transition may require some adjustment for financial professionals who have spent decades focusing on savings and retirement strategies for long-term growth. It starts by understanding the nature of baby boomers’ concerns about retirement income, and then looking for opportunities to adopt new financial products and strategies that ensure your practice continues to meet their needs.

Guaranteed income is a major concern
Baby boomers may face greater financial challenges than previous generations. Many are carrying mortgages into retirement, while others are still supporting their adult children and even elderly parents.

Another consideration is increased lifetime costs for housing, day-to-day expenses and, especially, health care. Looking ahead, clients need help developing a retirement income plan that will support their desired lifestyle — and they may want to eliminate as much uncertainty as possible from that plan. In a study from the Insured Retirement Institute, 60 percent of baby boomers said it is very important for income sources to be guaranteed for life.

How fixed indexed annuities help address client concerns
Given strong client interest in guaranteed income, financial professionals should examine how specific products and financial strategies can help meet that need. Fixed indexed annuities (FIAs) can complement other tools in a retirement income strategy, including 401(k)s, IRAs and Social Security benefits.

FIAs provide guaranteed income in retirement through a unique design that offers a combination of growth potential and protection from market risk. The contract earns interest that’s tied in part to the growth in one or more stock market index. Interest credits can accrue as an index increases in value. But when the index is down, the contract’s Accumulated Value is protected from market loss.

This combination of growth plus protection can help instill confidence in clients concerned about having enough savings to support their retirement lifestyle. Additional sources of guaranteed income in a retirement plan can also provide greater flexibility for investing in other assets, which can help further address longevity risk, create a legacy or provide a cushion against higher-than-expected medical bills or other surprise expenses.

Strengthening your practice
Helping baby boomers with their changing retirements needs isn't just good for clients — it’s good for your business, too. When you can assist them with their new retirement landscape, there’s a potential for greater levels of customer satisfaction and loyalty to follow. In turn, you may gain referrals from those happy clients.

Not only can you retain more clients, your clients will likely have a better overall experience. It's more effective to have one person overseeing a retirement income plan than to rely on multiple sources of potentially conflicting input.

This information is brought to you by Athene — where innovative annuity solutions are powered by unconventional thinking.