Formal Retirement Planning

How formal retirement planning can help improve client confidence & boost your practice

So many of the most important undertakings in life benefit from formal, written plans. Business owners write formal plans to secure funding and launch companies. Home renovations depend on detailed design planning, budgeting and timelines. Health and fitness goals can become more achievable with a structured plan.

That’s why it’s startling that only one in five retirees and non-retired workers has a formal, written retirement plan in place.1 Considering that for many, retirement may span decades, clients without a formal plan may stand to improve both their long-term financial security and their retirement confidence by putting their plans in writing.

The distinction between formal planning and ad hoc planning services can be key for financial professionals, too. Formal retirement plans can help you clarify saving and investing goals based in advance, and better prepare them for the transition from earning to decumulation.

Creating and regularly revisiting clients’ written retirement plans can also create opportunities to clarify the benefits of financial products like annuities. In these conversations, you can explain in detail – and show examples based on clients’ lives – how options for guaranteed lifetime income can help meet their objectives.

Developing formal plans with clients can also help shift the financial professional’s service model from order-taking toward more strategic and consultative relationships. As you help clients address changing financial circumstances through all of life’s stages, you can build loyalty as you strengthen clients’ retirement confidence.

• Evaluate healthcare coverage options

• Develop a strategy or plan for generating income from savings

When clients and financial professionals dig into these details together, clients can gain a clearer understanding of their broader financial picture in retirement. That awareness, coupled by the sense of taking concrete steps, can boost clients’ confidence and reduce their financial stress about what’s ahead.

*LIMRA reports that 36% of investors with formal plans own one or more annuities, compared with 27% of investors with informal plans and 16% of those with no plan. Among investors with formal, written plans who own annuities, 70% said they purchased annuities because of the plan.

Advantages for financial professionals

Implementing formal retirement plans can offer several advantages to financial professionals, too:

1. Strong client relationships. Detailed planning shows a commitment to clients’ long-term financial well-being. Getting to know clients over years and decades also creates opportunities to cultivate and retain relationships with younger generations and generate valuable referrals.
2. Enhanced service value. Offering structured, personalized strategies and leading clients through
planning can help differentiate and distinguish your practice.
3. Broader insight and opportunities. A formal plan allows you to get greater insights into clients’ financial situations. A deeper understanding can reveal additional opportunities for portfolio diversification, advanced tax strategies or estate planning needs.

Get help integrating annuities into your retirement planning strategies

Encouraging clients to engage in formal retirement planning is a great first step toward cultivating long­ term relationships and all the advantages they entail.

For clients, a formal plan provides clarity, confidence, and an improved outlook on financial security in retirement. For financial professionals, planning can offer a way to strengthen client relationships, enhance the value of financial services, retain clients through various life stages and build greater visibility into opportunities to help clients address their retirement goals with products like annuities.





SOURCE: Article from TruStage
*LIMRA. Just 1 in 5 Retirees Have a Formal Written Retirement Plan. 2023, 11 October.


    Planning for retirement is a responsibility that should be taken seriously, and choosing the right retirement annuity can be a prudent decision. Retirement annuities, acting as personal pension plans, provide a guaranteed income for life, bringing a sense of financial security and stability to retirees. As with any financial decision, it is essential to consult with a qualified financial advisor to assess individual needs and make informed choices. By harnessing the power of retirement annuities, individuals can confidently embrace their well-deserved retirement, knowing that their financial future is in capable hands.

    Talk to Hazard & Siegel when you need a comprehensive lifetime financial solution.

    Contact us today at 315-414-0722, or visit our personal investing page.