Personal Financial Planners Transmute to Retirement Income Planners

You're Visiting Retire2Enjoy.com

Personal financial planners are fast-becoming retirement income planners, according to a survey by the Financial Planning Association. Clients fear health care costs rising in their quest for retirement income security while their advisors worry more about the financial implications of longevity, according to research from Limra International.

Training as Retirement IncomePlanners for Personal Financial Planners

The Retirement Income Industry Association formed its new Retirement Management Analyst program, in conjunction with Boston University, just in time.

In March 2010, the Financial Planning Association released research showing that 89% of America's personal financial planners say they will likely obtain training on ways their clients can generate retirement income. They want to become retirement income planners. American financial advisors are enhancing their understandings of how to help clients transition from asset accumulation to retirement income generation.

The demand is certainly there. According to personal financial planners at Canada’s Laurentian Bank, the majority of their clients are seeking first and foremost advice on retirement preparation. The Manager of Financial Planning estimates between 60% and 70% fall into that category and need the advice of retirement income planners.

Rising Health Care Costs Are Not the Number-One Priority of Retirement Income Planners

This transition is not without its challenges, as retirement income planners and clients don’t always understand each other. For example, the month after the Financial Planning Association released its data, Limra International published a survey of retirees and personal financial planners on the risks of retirement. Limra found a dichotomy in the understanding of either group.

Specifically, retirees named health care as their top priority, followed by inflation, volatility and, lastly, longevity. The financial side of the longevity issue involves how long retirement money will last. In contrast, advisors ranked longevity as their top priority on behalf of clients, followed by volatility, health care and inflation.

These differences reflect a significant communication and understanding void about what clients want and how retirement income planners can help.

Topic: Financial Advisors