Intelligent SME.tech Issue 46 | Page 19

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President of Nationwide Annuity Business Development . “ Now is the time for advisors and financial professionals to check in with their clients and help them remain calm , nimble and informed in the face of continued economic headwinds , ensuring the plan they have in place continues to position them for a secure retirement .”

Strategies vary for investors already in retirement

To account for financial headwinds , retirees are bolstering their plans . Nearly two in three ( 63 %) retired investors have a strategy in place to protect their assets against market risk , up from 54 % last summer .

However , these retirement plans look radically different from the plans of generations past . Some retirees ( 12 %) are abandoning the 70 – 80 % spending rule ( i . e ., ensuring they have 70 – 80 % of their pre-retirement income per year in retirement ) and 11 % are casting aside the 4 % rule ( i . e ., withdrawing 4 % of their retirement portfolio each year when retired ).

Retired investors are also initiating conversations about legacy planning and wealth transfer with their heirs . Nearly a third ( 32 %) of retirees are discussing wishes for end of life ( long-term care expenses , funeral preferences , etc .) and 34 % are discussing financial details of their estate with heirs .

Financial advisors guide clients toward retirement security

Advisors are supplying their clients with the guidance needed to help achieve financial security in retirement , counselling their retired clients on how to generate guaranteed income ( 23 %), prioritising wants vs . needs ( 21 %) and supplementing income out of necessity ( 16 %).

Advisors are also helping investors plan for lingering financial commitments , such as mortgage repayments , which more than a third ( 34 %) of advisors say their clients are planning to continue paying in retirement .

With the Great Wealth Transfer underway , advisors are helping clients – and their heirs – prepare . More than half ( 59 %) of advisors say their clients are confirming beneficiary designations to prepare their heirs for the transfer and management of wealth . Another 54 % say their clients are reviewing or creating estate planning documents , and 44 % are building financial confidence and knowledge .

“ Advisors are recognising and acknowledging investors ’ desire to avoid making the wrong moves in retirement ,” Morrone said . “ They can help clients feel more confident about their retirement plans by understanding their goals and anxieties and helping them protect their savings and plan for income they won ’ t outlive by reinforcing the value of different retirement solutions and products , like annuities .” �