A predictable and growing marketplace

Social Security is the major source of income for most of the elderly, according to the Social Security Administration.

• Nine out of 10 individuals age 65 and older receive Social Security benefits.
• Social Security benefits represent about 39 percent of the income of the elderly.
• Among elderly Social Security beneficiaries, 53 percent of married couples and 74 percent of unmarried persons receive 50 percent or more of their income from Social Security.
• Among elderly Social Security beneficiaries, 23 percent of married couples and about 46 percent of unmarried persons rely on Social Security for 90 percent or more of their income.

Social Security provides more than just retirement benefits.

• Retired workers and their dependents account for 70 percent of total benefits paid.
• Disabled workers and their dependents account for 19 percent of total benefits paid.
• About 91 percent of workers age 21-64 in covered employment in 2011 and their families have protection in the event of a long-term disability.
• Just over one in four of today’s 20 year-olds will become disabled before reaching age 67.
• 69 percent of the private sector workforce has no long-term disability insurance.

Of all adults receiving monthly Social Security benefits, 44 percent were men and 56 percent were women. Seventy-nine percent of the men and 62 percent of the women received retired-worker benefits. About one-sixth of the women received survivor benefits.

What’s needed for us to help our clients retire “successfully”?

• Provide the information necessary for them to decide to make it a success.
• Help them plan, commit and communicate (include family) their retirement plans.
• Make sure they know their financial status.
• Discuss and review their plan for their time (social, leisure and work).
• Develop a retirement “roadmap” with them, not just for their “best” retirement year, but ensure they are prepared for their “worst” retirement year, in terms of finances, health care and end of life.
• Follow, review and change as necessary.

Seniors’ top concerns tend to be outliving their assets, maintaining their independence, their own health and safety issues. For seniors over age 75 the issues tend to gravitate to family and friends, leaving a legacy and their reputation. The U.S. population age 65 and over is expected to double in the next 25 years. By 2030 almost one out of five Americans (some 72 million people) will be 65 years or older. Isn’t that a market you should consider working with to grow your business?

For more from Lloyd Lofton, see:

• 5 ways to boost profits
• Financing long-term care needs with an annuity
• Invest in stocks? Yes. But don’t forget about annuities
• What is your most important asset?