Boomers not interested in rocking chair retirement

Survey reveals many want to work some during their golden years

Jul 12, 2011 @ 4:13 pm

By Darla Mercado

+ Zoom

Retirees, and those about to retire, are very slowly regaining their optimism.

A survey released by SunAmerica Financial Group Inc. and Age Wave today heralded a post-crisis rebound — at least emotionally — among the over-55 crowd. Prior to the recession, 62% of those polled felt secure about their financial situation. That figure fell to as low as 36% during the worst of the market tumult. But sentiment seems to have improved since then: 44% of those polled now have a sense of security about their finances.

Perhaps some of that positivity is based on baby boomers' realistic expectation that they'll be working through their retirement. Fully 65% of those polled said they would ideally prefer to have some work during retirement. The statement particularly resonated among younger participants between 55 and 64, 77% of whom agreed they would like to work in retirement. Only 56% of those over 65 felt the same way.

Boomers seem to be attuned to conversing with their families about finances.

Half of those polled said they would have more family discussion on their financial needs, and 49% said that they expected to provide additional financial assistance to their family. Seven out of 10 expected to provide financial aid to their adult children.

The unique issues confronting retirees and preretirees give advisers an opportunity to re-frame their conversation with those clients, said Larry Roth, chief executive of Advisor Group, SunAmerica parent American International Group Inc.'s network of independent broker-dealers.

He said that Advisor Group, which is made up of FSC Securities Corp., Royal Alliance Associates Inc. and SagePoint Financial Inc., would kick off an initiative to encourage advisers to begin dialogue with clients from a lifestyle perspective rather than a financial perspective.

“Instead of asking questions about when you want to retire and the amount of money in your account,” Mr. Roth said, “we want to start with what's in the hearts and minds of the clients.”

He noted that not all advisers were necessarily expected to go along with the new approach, particularly if it isn't their style. “Some financial advisory practices are prescriptive,” Mr. Roth said. “It's going to force some advisers out of their comfort zone.”

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

How to effectively engage and serve female clients

It is clear building relationships with women is a proven way to grow your business. Heather Ettinger of Fairport Asset Management explains proven segmentation strategies.

Latest news & opinion

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

Eduardo Repetto to leave Dimensional Fund Advisors

Gerald O'Reilly, currently co-CIO, will take over as co-CEO with David Butler.

Alternative strategies boomed after crisis, but haven't been tested

Because the S&P 500 has outperformed, convincing clients they need protection is a hard sell.

7 ways advisers fixed clients' biggest financial dilemmas

Sometimes it takes creativity, along with knowledge and outside help, to get a client out of a jam.

LPL Financial buys NPH, a broker-dealer network with 3,200 advisers

The deal, part of which is based on the advisers and revenue that eventually will move from NPH, could potentially cost LPL $448 million.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print