In the past year, troubling financial news has generated great concern among baby boomers as many have watched the value of their retirement accounts plummet. As trusted financial advisors, how do you attract boomers to your business and provide sound advice during these tough economic times? Begin by first understanding their unique financial challenges and then offer personalized advice based on these challenges.
The Retirement Boom
Even before the current financial crisis, boomers faced defined benefit pension terminations, longer life expectancy, decreased personal savings rates and potential shortfalls in government benefit programs that could leave many with a fraction of the income needed for retirement.
Research shows 70 percent of boomers have not sought out financial advisors, leaving millions who need our help. But attracting members of this unique generation to your practice–and keeping them–requires a delicate balance of coaching through solid financial advice, complemented by listening, understanding and client empowerment.
Communicating with boomers
The most critical messages to communicate to boomers are actually quite simple and are the same no matter the economic climate:
- Take action to prepare for retirement.
- ANY action is better than nothing.
Because no two boomers are alike, each will view retirement preparedness differently. Successful advisors understand boomers’ unique circumstances and provide tailored financial solutions to help them maintain financial dignity during retirement through decisions regarding: lifestyle, life income and lifeboats.
To help boomers address their current and future lifestyle, advisors must recognize that boomers — even those the same age — might have completely different financial circumstances. For instance, the needs of those turning 62 clearly differ from the 44-year-olds who represent the youngest of this generation. In addition, one 50-year-old may be in the “empty nest” stage of life, while another may be providing financial support to young children or aging parents.
For more information on understanding boomers, go to www.seniormarketadvisor.com/boomers.