Helping baby boomers transition into retirement

May 13, 2014 @ 12:00 am

Runtime: 2:18

While baby boomers could face a transition to retirement of as long as five to 10 years, their financial planning needs need more care and vigilance, according to Robert DeChellis, president of Allianz Life Financial Services.

Video Transcript

[MUSIC] The way we look at a transition boomer is really someone who has started to think about retirement, right. And, and one of the things that we like to point out is that unlike what most people think in terms of the transition period Sometimes, six to 12 months, maybe one to two years. We actually think the transition period is more like five or ten years, right, because there are a number of things if, if, you're able to have that amount of time, that you can sort of make up for in terms of, maybe, things you didn't do in planning for retirement. So we look at a transition boomer as, sort of that person who has, started to think, about that point in retirement in the future, in those amount of years. Things have changed for boomers today, in terms of planning for retirement. Probably most you know, notably is, the fact that, when you look at what happened in 2008 in the market. We've had a generation here of investors that now has really resorted to putting their money in cash versus actually investing in capital markets. So you look at for example the DOW went from a low of 6626 in March of 2009 to over 16,000 but yet we look at the money that's been held in cash during that period of time. We believe that we're seeing a boomer that is far more conservative and has far more need for protection as they plan for retirement. We also think that there's a reality around health care. When you look at health care costs in terms of, from an inflation perspective, relative to other in items that they're dealing with from an inflation standpoint. We think health care is gonna also play a very significant role. The first thing that an advisor needs to think about, when working with a transition boomer is getting the facts, the clarity around their situation. What are their expenses? You know, when they look at their needs, their wishes, their wants. Do they have legacy, desires. Those are the types of things we would say just from the standpoint of beginning the discussion. Where we find that people often don't look at their, what their consumption needs are going to be in retirement and ultimately are they gonna have the assets to provide for that. [MUSIC]

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