More advisors are finding that one specific demographic accounts – retirees and pre-retirees — for most of their business.
According to a report from the LIMRA Secure Retirement Institute, half of all financial advisors says the majority of their business is dedicated to financial planning for pre-retirees and retirees. This represents a huge increase in this type of activity since just five years ago – nearly 40 percent.
“Given so many baby boomers are retiring or preparing for retirement, it is not surprising that advisors are seeing more of their business dominated by the needs of these consumers,” said Jafor Iqbal, assistant vice president of the LIMRA Secure Retirement Institute.
The Institute estimates that retiree households will account for more than half of the more than $25 trillion investable assets by 2023.
“Managing these assets and de-accumulation for their clients will be very important for the foreseeable future,” Iqbal said.
One explanation for this extraordinary increase may be that advisors have significantly expanded their retirement income planning services since 2011, according to the LIMRA study. Overall, eight in 10 advisors said they spend more time now on retirement income planning than ever before.