3 big retirement savings trends advisers need to know

Jun 4, 2014 @ 12:00 am

Runtime: 2:33

Rob Cirrotti, Pershing's director of retirement solutions, highlights three major trends poised to alter the retirement savings landscape.

Video Transcript

[MUSIC] So I think that there's three trends that are facing advisors and investors with respect to retirement savings. First to preface it, retirement is an important goal for so many Americans and so, for so many investors, so it's top of mind. But secondly there's some major shifts that are happening in the market place. The shift from defined benefit to defined contribution continues to, to go on on. And so investors are interacting with investments in ways that they didn't have to before. The portability of the defined contribution system is also driving dramatic growth in IRA rollovers. As a result of that growth, regulators are paying attention. And that's something that firms and advisors, in particular, need to be, keep an eye on, in this environment. To make sure that the best interests of the investors are always kept in mind. And, I think, a third trend that, that investors and advisors are facing right now is the trans, transition from an accumulation mentality to a de-cumulation mentality. Sometimes talked about as retirement income. And that's a big shift for both advisors as well as investors. Social Security continues to be a very important element to many individuals' retirement. it, it's so key to creating a strong foundation of retirement income for individuals. And I think that it can be used in different ways. first, because it's something that every individual is going to be faced with making decisions around claiming strategies. When's the right time to take Social Security? Am I maximizing that benefit? There's a lot that can be developed in terms of trust, in that advisor and investor relationship. If that advisor can help consult that individual on the best ways to maximize their Social Security, and effective strategies to make sure that their retirement income is bolstered by Social Security. At the same time, I think it's important for younger generations, as advisors interact with them, to think about the concerns that they might have about the system and Social Security, and whether it will be there when it comes time for them to retire. So as they manage those issues, I think it's an opportunity for advisors to engage their younger clients, knowing that they may have concerns that Social Security is not there. And they need to plan even better, and be more in tune with their goals and the, and the investing and saving that they need to form and, and kind of habits that they need to form over their investing time, time frame. [MUSIC]


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