Want to be Prepared for Retirement? Work With a Professional

People who use financial advisors are more than twice as likely to feel confident in their retirement preparedness than people who don’t. That’s the conclusion of a recent report from the LIMRA Secure Retirement Institute.

It helps to have a plan 

The survey also found that having a formal, written retirement plan is a big plus when it comes to preparing for retirement. Two thirds of those who have a written retirement plan report feeling well prepared.

The study confirmed earlier research that shows that people who work with a financial advisor over time are typically more prepared for retirement than people who don’t. “Consistently, our research has shown that those who work with an advisor are more likely to have a plan, have a better grasp of their financial situation and generally feel more confident in their retirement security,” said Jafor Iqbal, assistant vice president of the LIMRA Secure Retirement Institute. 

That said, many Americans have a long way to go before being fully prepared for retirement. The LIMRA study also found that only 27 percent of pre-retirees have a fully-developed plan for converting their retirement nest eggs into a stable and reliable income stream, and only 1 out of 3 have estimated how long their retirement savings are likely to last.

One pre-retiree in five has not completed any retirement planning activities at all. 

In each case, though, those who work with professional financial advisors were substantially more likely to have completed these vital financial planning steps than those who do not work with an advisor.

A qualified advisor may help you and your family in the following ways:

Providing a roadmap A good advisor will help you develop a snapshot of your current financial condition, and help you develop a realistic plan to help you reach your financial goals while protecting what you already have. Many people report feeling better about their finances because they now have a clear understanding of their situation, and have a track to run on. 

Risk management Insurance products like life insurance, long term care insurance and annuities can take a great deal of uncertainty and risk out of your financial future. Licensed insurance professionals can help you preserve your legacy and assets while helping ensure you won’t outlive your income in retirement.

Continuity Many times one spouse handles most of the finances. If that spouse dies or becomes disabled, the other spouse may not be comfortable with taking over the financial decision-making, and may simply not be capable of doing it as well. A financial advisor can provide needed continuity and assistance through difficulty and tragedy.

A fiduciary advisor will work to see that your family is protected from financial catastrophe like disability or untimely death of a breadwinner, and to see you realize your financial goals, including a long and comfortable retirement.

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