‘How much do I need to save for retirement?’ is the primary question that often spurs people to take a longer-term, more holistic view of their finances. While many understand the significance of retirement planning, when the necessity trails from spending today’s dollars to managing tomorrow’s money, a lack of expertise and skill can lead to indecision or inaction.<\/p>\n
According to a Fidelity Investments State of Retirement Planning Study, which spoke to a national sample of over 1,000 adults who are not yet retired, just 25 percent of respondents accurately identified the expert recommendation to have 10-12 times your last full year of working income saved by the time you reach retirement.1<\/sup><\/p>\n Financial professionals who can quickly address retirement readiness to prospects and existing clients have an opportunity to engage this audience and highlight value in both retirement and broader financial planning.<\/p>\n Time and time again\u2014across all facets of life\u2014we see examples of how preparation and planning leads to better outcomes. Interestingly, the State of Retirement Planning Study found that those who approach retirement with a blueprint or a plan in place have greater peace of mind that they’ll weather market volatility, and are more confident that they’ll be able to retire when and how they want to.1<\/sup><\/p>\n To help those in need, you want to achieve a straightforward understanding that the client’s planning situation will fall under the following actions: saving more, spending less, or retiring later.<\/p>\n Developing a picture of both the client’s base needs and the resources they have available will quickly show how they work together. And it will also reveal whether the outlook can be improved. For the quick financial plan, you can keep data inputs to a minimum to at least obtain the 15,000-foot view for the client:<\/p>\n Further evaluating options around the retirement goal will require the financial professional to make several assumptions about how to align the desired retirement age with the desired lifestyle.<\/p>\n While income history can be used as a predictive measure to gain insight around future needs, there is often more to uncover about by the client’s expectations for their retirement, such as access to family or community, or top-quality health care. Discussion around different lifestyle choices helps to explore a broad array of circumstances surrounding the client’s financial life and their values.<\/p>\nSolving for Retirement Needs with a Quick Financial Plan<\/h2>\n
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Imagining a Comfortable Retirement<\/h2>\n