Redefining retirement: How financial professionals can best serve clients in today's changing landscape

This article is produced in partnership with Guardian and Park Avenues Securities 

The concept of retirement is rapidly evolving. Traditionally, retirement marked a distinct end to working life — a transition to rest and leisure. Today, with increasing life expectancy and shifting economic circumstances, retirement has become a flexible and dynamic phase, shaped by both personal goals and realities around health and finances. For financial professionals, this calls for a more adaptive approach to advising clients. 

What’s changing in the retirement landscape? 

Several demographic and economic trends are redefining retirement, according to joint research from Guardian and Park Avenue Securities’ Retirement Redefined report. 

Today, more older adults are staying in the workforce. In fact, three out of four people expect to work at least part-time during retirement, with just 27% of workers envisioning retirement as completely leaving the workforce. The traditional idea of retirement as a full stop is becoming less common, replaced by flexible engagement in work, volunteering, or new pursuits. 

Americans are also living longer, meaning retirement can easily last 20 years or more — requiring savings to last longer than ever. 

Moreover, with traditional pensions declining and concerns about Social Security’s future, Americans are increasingly looking to alternative income sources to fund retirement. As a result, diversifying income streams and proactively addressing financial gaps is an even more critical element of retirement planning. 

Mental, physical, and emotional wellness challenges further complicate the picture. Guardian and Park Avenue Securities found that only 30% of current workers rate their financial health as very good or excellent. Among retirees, the percentage increases to 54%, but that still leaves almost half of retirees who do not have high self-reported financial health. Many individuals also face emotional and physical hurdles after retirement, such as loneliness and unforeseen health issues, for which they may be unprepared. 

While one in five retirees and two in five workers say they aren’t fully satisfied with how they’ve prepared for retirement, we also know that fewer than half have consulted with a financial professional. Amid these shifting factors, there’s a significant opportunity for financial professionals to help clients navigate the evolving landscape with confidence to set the stage for a fulfilling retirement. 

Helping clients build financial confidence for the future 

For financial professionals, these trends call for planning that prioritizes longevity and adaptability. Retirement may now span two or more decades, making it essential to structure portfolios that provide sustainable income and account for health care and other expenses. Flexibility is also a key principle, as client needs and circumstances evolve.  

Here’s what this can mean for advising clients towards a confident and fulfilling retirement: 

• Retirement is a personalized journey: Financial professionals should help clients see retirement not as a fixed endpoint, but as a unique path filled with possibilities — whether continuing to work, starting a business, or volunteering for causes they care about. 
• Alternative income sources are crucial: To help close income gaps amid potential changes to pensions and Social Security, financial professionals should work with their clients to explore options like annuities and life insurance. For instance, a registered index-linked annuity (RILA), like Guardian MarketPerform®, can help clients reach their financial goals for retirement by offering growth potential for their retirement assets, while providing a level of protection during market downturns. 
• Education empowers impactful decisions: Many younger workers lack familiarity with key financial instruments, such as annuities. Financial professionals should prioritize educational efforts to ensure clients understand their options and can make informed choices, even decades ahead of retirement. 
• Physical and mental wellness can help drive satisfaction: Retirement success goes beyond finances; financial professionals should encourage meaningful engagement and preparation for health and caregiving needs. 
• Personalized education sets realistic expectations: Clients benefit from ongoing, tailored guidance to dispel misconceptions about retirement, helping them plan more effectively for the future. 

With these learnings in mind, a holistic, flexible approach can empower clients to embrace the evolving retirement landscape with confidence and clarity. 

The new retirement reality 

Today’s retirement is more complex and individualized than ever before. By fostering open conversations, prioritizing education, and addressing financial, mental, and physical needs, financial professionals can help clients navigate retirement with confidence and purpose. 

The impact can be significant — Guardian and Park Avenue Securities found that of those who report high financial health, more than half (53%) work with a financial professional. What’s more, over half (55%) of those who feel “exactly on track” for retirement work with a financial professional, versus just 20% of those who handle their finances independently. 

Now is the time to make a difference. Start the conversation with your clients today. 

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