Those poorly financially prepared Boomers have a new benchmark for their collective lack of planning: Seniors 75 and over have a net worth nearly 20 percent higher than younger Boomers, aged 45 to 54.
The Insured Retirement Institute’s new report, “Retirement Planning and the Elder Market: Advisor Strategies to Understand and Work with Senior Clients,” explores the challenges advisors face in conveying pertinent information to older clients, a market segment that is growing in both number and net worth.
The report found the highest median net worth is among individuals between ages 55 and 64 while senior citizens, age 75 years and older, have a net worth almost 20 percent more than those in the 45-54 age group.
IRI research found that two-thirds of advisors report their clients have asked them about annuities and that Boomers identified guaranteed income and principal protection as the most important trait of a retirement investment.
As a result, the report suggests that during the retirement strategy discussion, advisors must do the right thing and be certain their elder clients understand all the options, features, benefits and costs of the annuity products under consideration.