The majority of financial planners believe that the retirement income market will continue to grow substantially, but at a slow pace, according to a recent study conducted by the Financial Planning Association (FPA). The study, entitled “The 2006 FPA Financial Advisors’ Attitudes and Perceptions about the Retirement Income Distribution Market,” was sponsored by OppenheimerFunds Inc. and produced by the Diversified Services Group, Inc. (DSG).
“Extended life expectancies, a greater number of variables to manage, and difficulties in communicating with older clients, make for a much more protracted and complicated planning and monitoring process for financial planners,” said DSG’s Bob Vickery. “The situation has the potential to grow worse over the next 10 years as the demand for retirement income and distribution services continues to increase and compliance requirements are likely to become even more onerous.”
As such, the study states, financial planners might need to reconsider their current business models in order to meet the needs of the growing and diverse aging population. Financial service companies can support planners’ work in this area by continuing to develop sophisticated planning tools and services, and by communicating with each other on an ongoing basis in order to keep their business more dynamic.