It’s a common misconception among clients that there is one magic number that everyone needs to hit to retire comfortably. However, there isn’t a one-size-fits-all solution for retirement plans. Successful retirement planning hinges on asking the right questions to understand a client’s unique goals, needs, and circumstances. Here are eight essential questions that you can ask to ensure that a client’s financial plan is aligned with their retirement vision.

1. If you could visualize your ideal retirement, what would it look like?

Prompting your clients to articulate their retirement dreams sets the stage for meaningful conversations around lifestyle choices, financial priorities, and long-term goals. Keep in mind that not every client is going to know exactly what they want their retirement to look like. You may need to follow up with more specific questions to help guide them to their retirement vision, such as:

• Where do you want to live?
• What activities or hobbies do you want to pursue?
• Do you want to travel?
• Do you want to spend more time with your children and/or grandchildren?
• What do you wish you had more time for now?
• Are there things you have always wanted to do if you had the time?

2. Do you have a general age range in mind for when you hope to retire?

Aligning a client’s financial plan to their desired retirement timeline is crucial for ensuring a smooth transition. Delving into the “why” behind their target retirement age can also provide additional insights into their motivations, lifestyle preferences, and plans for the future.

3. Other than the essentials, what kinds of experiences or commitments do you plan to spend on during retirement?

Asking about your client’s spending expectations is another way to gain valuable insight into their retirement vision and further refine their financial plan. If your client is unsure how to answer this question, look to their current spending as a starting point and discuss the ways it could change in retirement.

4. Are there any additional sources of income you anticipate having during retirement?

This question can uncover whether the clients have any assets the advisor is unaware of, or find out if the clients plan to work part time during retirement. This will allow you to help your clients assess their current resources, discuss when they will take social security, optimize their investment strategies, and proactively address any gaps in their retirement income. Leveraging technology tools can assist in modeling various income streams, enabling you and your clients to make informed decisions and adjust their plans as needed.

5. Have you considered how healthcare costs will impact your retirement?

When it comes to retirement planning, it’s crucial to consider healthcare costs. These expenses are often overlooked or underestimated, leading to financial strain during retirement. By prompting your clients to reflect on their healthcare and insurance needs, you can help them take proactive steps toward planning for their future needs.

6. What wishes do you have regarding your long-term care?

This can be a sensitive topic, but it is important to help your client plan for their entire retirement—including when they may require extra care due to health limitations or general aging. Whether their preference is in-home care, an assisted living facility, or a nursing home, having a plan in place to cover these potential expenses will provide peace of mind for your clients and their loved ones.

7. Have you thought about leaving a financial legacy for your loved ones or charitable causes?

Legacy planning is another sensitive, but important, topic to discuss. If your client feels strongly about leaving an inheritance to their loved ones or donating to their favorite charities, you want to be able to ensure their wishes can be carried out. Asking estate planning questions will help you understand their goals so you can incorporate them into their financial plan.

8. What concerns or fears do you have about retirement?

Understanding your clients’ concerns and fears about retirement is key to providing them with peace of mind. Facilitating an open discussion on this topic will help you address potential obstacles proactively and develop a financial plan that is designed to help alleviate their fears.

Facilitate Meaningful Discussions

When you sit down with your clients, aim to have these questions for retirement planning flow naturally as part of your conversation. You want it to be a discussion rather than an interrogation. Ask follow-up questions to delve deeper into your clients’ answers and guide the conversation in a way that will help you best serve them.

Finally, don’t forget to revisit these questions as your clients’ lives evolve. Financial planning is an ongoing process, and their retirement needs and goals will evolve. It’s always a good idea to check back in periodically and ensure that their financial plan is still aligned with their vision for the future.

For more tips on guiding your clients through retirement planning, check out my article Bring Client Retirement Goals to Life in Vivid Color.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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