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

INTV

AXA's Christine Nigro: How to handle being the only woman in the room

Women face unique challenges as they move into the C-suite, and they need to remember to always be themselves and let their professional strengths shine, according to Christine Nigro, vice chairman at AXA Advisors.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

10 funds with largest 3-year outflows

Even well-managed funds that have beaten the S&P 500’s 10.1% average annual gain have watched investors flee.

Wirehouse training programs are back

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

New military pension rules need financial advisers to step up and serve

Matching defined contribution plan expected to see more money, more need for sound advice.

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print