Position Yourself as a Trusted Advisor before Participants Retire
Most participants understand the importance of saving for retirement, but are uncertain of how large a nest egg they’ll actually need to live comfortably in retirement. And when it comes to how much income their retirement savings will provide, or how much to withdraw each year to ensure it will last, they’re really in the dark. That’s where you can help.
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• 87% of individuals don’t know how much income to expect in retirement • 70% believe that managing money in retirement is as difficult or more difficult than saving • 69% don’t know how much to withdraw each year to make their savings last |
Participants Need Guidance Before and During Retirement
As their retirement plan advisor, your clients’ participants naturally may look to you for help with retirement income planning. This presents an excellent opportunity to build your personal business through one-on-one relationships with individual participants. Offering value-added services to participants while they’re still working can help you position yourself as the “go to person” for all things retirement. And that’s important, because you don’t want your participants to take all the money you’ve helped them accumulate to another advisor when it’s time to retire.
The Growing Need
By 2012 there will be $1 trillion coming out of retirement plans like
401(k)s, IRAs and mutual funds every year.1 That’s bigger than the
401(k) market has ever been.
Make sure you’re prepared to capitalize on this market transition by positioning yourself as a trusted advisor to your clients’ participants now. Develop strong individual relationships. Offer value-added services such as retirement income planning. And get ready for one of the biggest shifts in retirement assets our industry has ever seen.
1 "Extending the Franchise," Retirement Services Roundtable. 2007
