A new report from Aite Group, LLC examines the financial habits and concerns of those of near-retirement age.
The report reveals that their retirement savings concerns, combined with an evolving market space, can equate to opportunities for financial advisors. It also indicates that while independent advisors now lag behind brokerage firms as consumers’ preferred financial planners, that may soon change.
The report is based on an October 2007 survey of 505 US residents five years before or five years after retirement concerning various aspects of their financial situation and in particular of their retirement savings. It reveals that 45% of survey respondents believe their retirement savings will not cover all the costs they will encounter during their retirement.
Financial planning, however, can provide a remedy. Consumers that have a financial plan are two and a half times more confident they have sufficient retirement savings than consumers without one. As such, financial planning is one of the key enablers for financial services firms to be successful with the baby boomer generation, allowing firms to build an ongoing relationship with these consumers and to move into a trusted advisor role.
“With the currently difficult markets and a landslide of consumers preparing for retirement, financial services firms have to adopt their offerings to meet new conditions. Financial advisors that are able to respond to the needs of the baby boomer generation – in particular relating to this generation’s looming retirement issues – will win the trust of this all-important consumer group, and will benefit from the changing times ahead,” says Alois Pirker, senior analyst with Aite Group and author of this report.