One tool that may help you do a better job of meeting the needs of retirement planning prospects is understanding how they see their future selves.
What do you imagine when you think of your own dream retirement? Are you sitting on a beach sipping a cool beverage, or learning a new skill like tennis? And, as you move into this new phase of your life, even if everything goes reasonably well, what will you miss the most?
(Related: NAIC Tees Up on Annuity Suitability Models)
According to new survey data from my group, the Indexed Annuity Leadership Council, the number one thing Americans expect to miss in retirement is a steady paycheck. IALC drew the results from a Toluna panel of about 1,000 adults ages 18 and older. About half say they think they will miss their paycheck after they retire.
Nearly half of the survey participants said they’re concerned about outliving their money.
Other items that retirees expect to miss when they retire include:
Social interaction: 41%.
Daily routine: 34%.
Health insurance: 26%.
The products you sell might not have an obvious impact on social interaction or the ability to maintain a daily routine, but life insurance and annuities can play an important role in helping retirees compensate for the loss of a paycheck, protect themselves against longevity risk and pay for health insurance.
Fixed indexed annuities, in particular, can help provide a steady, retirement income stream and can provide balance in a portfolio.
Encourage clients to check out IALC retirement calculators and start thinking about what they can do maximize what they'll enjoy about retirement and minimize what they'll miss.
--- Read My Favorite Retirement Tool on ThinkAdvisor.