Financial advisors and planners are often faced with the question of how to help clients prepare financially for retirement. The first step is to try to define together with your consultant how many financial resources you would like to have after retirement, how much you need to set aside and how much to invest in order to achieve the desired standard of living. But preparing for retirement goes beyond finances, it also requires emotional preparation. Consultants and financial advisors must therefore consider the stage of life of the investor. For example:
IF THE CUSTOMER IS MORE THAN FIVE YEARS FROM RETIREMENT
Help your client define an accurate picture of what they want for retirement, so it's easier to make the right choices.
• Encourage the client to take a moment to imagine themselves in the future as a happy and healthy older person.
• Ask him to consider whether his interests, values and the way he likes to spend his time will change.
• Ask if he knows at what age he would like to retire, informing him that retirees live longer and that many want to continue working and earn an income later in life.
IF THE CUSTOMER IS LESS THAN FIVE YEARS FROM RETIREMENT
Help your client get a more detailed picture of how they would like to spend their retirement years. For example:
• Has your client thought about how he would like to spend his time in retirement? Does he plan to use his experience and professional skills in any way?
• How could you reshape and redefine your identity beyond work? What new interests might you be interested in considering?
• Has your client considered planning some activities for the first few weeks of retirement to help ease the transition to a less structured lifestyle?
IF THE CUSTOMER IS RETIRED
• Talk to your client about how life in retirement changes all the time – especially as retirement can last 20-30 years. Being open to changing course along the way is important and helpful.
• Reassure the client that it is normal to take some time to adjust to retirement.
• Encourage your clients to try new activities, stay mentally and socially active, and build new relationships.
Deepen your relationship with the client, helping them prepare not only for the financial aspects of retirement, but also for the emotional transition that occurs at that stage in life. These discussions will also provide important information for the financial plan you and your client are working on to help ensure you achieve your desired retirement outcomes.
