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Data & Research September 4, 2014
Demand for Advice Among Retirees Is Growing
The LIMRA Secure Retirement Institute (SRI) estimates that 1.5 million people will retire annually from now until 2025, creating significant demand for advice on spending and investing in retirement.
Reported by John Manganaro
This represents about 123,300 newly retired people per month, according to a recent LIMRA SRI analysis. Put another way, almost the same number of people will retire per month through 2025 as the entire population of Hartford, Connecticut.
In the “2014 Fact Book on Retirement Income,” LIMRA researchers suggest more than half of pre-retirees age 55 to 70 are not confident that they will be able to achieve the lifestyle they want in retirement. Additional LIMRA SRI research reveals fewer than four in 10 pre-retirees currently work with an adviser, yet those who do are more likely to have completed basic retirement planning and are significantly more confident about their retirement security.
In fact, LIMRA says 79% of pre-retirees who work with an adviser say they are well prepared or moderately prepared for retirement. Among those who do not work with an adviser, 34% say they are poorly prepared, and 16% say they are not prepared at all.
LIMRA says advisers can help clients arrange effectively for their life after work by creating a lifetime retirement income plan—something that is ranked as a top adviser-deliverable for 51% of pre- and near-retirees polled by LIMRA.
About half of pre-retirees also put a high value on advice and support that minimizes the risk of running out of money in retirement. Additionally, more than 80% of advisers and pre-retirees agree that a written plan is the best way to achieve goals for a secure retirement, LIMRA says.
Additional insights and research from LIMRA SRI are available on the LIMRA Industry Trends Blog.