Talk With Older Boomers Now About Income Planning, Experts Say
Brokers need to be talking with their baby boomer clients about their retirement income needs, and they need to start the discussion now, according to Moira Moldenhauer.
She is owner of Seniors Financial, a Buffalo, N.Y., division of Moldenhauer Advisory Services, which is owned and operated by her husband.
Combined, Moldenhauer and her husband have 500+ clients who “are moving closer to retirement and who need advice and counsel about the financial aspects of living in retirement.”
Older boomers, now aged 47 to 57, are in greatest need of help. “These clients have to start dealing with retirement issues now, so they can get their money and their financial plans in place while they are still working,” says Moldenhauer. They need to look at not only income protection plans but also protection for the unexpected, such as long term care expenses, she adds.
Based on calls and e-mails sent to National Underwriter, advisors in various parts of the country–and financial services companies as wellare starting to embrace this thinking. This article reviews why and also looks at some strategies to consider in broaching the topic with boomer clients.
Future articles in NUs all-new Advising Boomers section will cover specific income planning needs that boomers have. If you have suggestions to offer, send them along to [email protected].
Why broach the subject now? Many seniors and boomers do not have enough assets to retire comfortably, says Matthew Greenwald, principal of Matthew Greenwald & Associates, a Washington, D.C. research firm.
“For instance, in 2000 the median household wealth for workers age 55-64 who have a retirement account was only $273,760,” Greenwald says, citing a census data analysis. For boomers age 45-54, the number was lower–only $201,690. Yet both groups have household debt–$36,400 and $63,200, respectively–and the most valuable asset for each was home equity.