Retirement Age Creeping Up for Most Americans

People are living longer than ever before, but that increased longevity doesn’t necessarily mean that consumers will spend more time in retirement. In fact, the past few years have seen an increase in the number of Americans who stay in the working world past the age of 65.

Insurance can boost peace of mind for business owners.While some consumers are forced to stay in the workforce out of necessity, many high net worth individuals are prolonging their careers by choice. Working past the traditional retirement age offers several benefits, and allows consumers to build stronger retirement savings.

Financial professionals who work with people near retirement age should speak with clients about their anticipated career shifts and structure financial plans accordingly. As more people choose to keep working, retirement past the age of 65 is becoming the norm.

People keep working longer

In the latest Retirement Survey from Transamerica, 20 percent of respondents said they would continue working in their current type of position until they no longer could. A
larger portion of respondents indicated they planned to ease their way into retirement by slowly reducing their hours. That approach, which would combine some of the freedom retirement provides with continued income from employment, was favored by 41 percent of consumers.

Transamerica noted that this transition strategy might be very effective, but pointed out that retirement plans and the laws governing employment would need to change to accommodate this new model.

Working with these clients

Anyone who works later in life can enjoy the increased retirement income a part- or full-time job provides. As a high net worth client transitions from their working life into a mix of retirement and part- or full-time employment, financial professionals need to provide an adjustable suite of retirement planning options, according to Investment News.

Financial professionals who work with clients in this transitory stage must conduct thorough policy reviews regularly. These clients will experience regular changes in their employment income, and may begin receiving money from other retirement investments. Balancing these funds and ensuring that a consumer meets their personal retirement goals will require consistent adjustments to existing policies and plans.

Life insurance can play a role in helping clients achieve their retirement goals while also providing for their spouse and loved ones before and after retirement.  Financial professionals should talk to their high net worth clients about how life insurance can be used to diversify their overall risk profile as well as provide for their clients during retirement.

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Highland Capital Brokerage

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Highland Capital Brokerage is committed to developing client-focused relationships with financial advisors using our core competencies of life insurance, annuities, and long-term care. We distinguish ourselves by providing point-of-sale support, advanced marketing, and creative estate and business planning techniques.
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