Rethinking the Risks of Retirement

A new study finds that clients want fiduciary advice, risk management ability and retirement income solutions from advisors — who may find that guaranteed retirement income solutions now resonate.

The world has changed — especially for advisory clients in or near retirement. After a long period in which they enjoyed rising and relatively stable markets, low inflation and increasing confidence in the future, those over the age 55 now face a time of greater market volatility and lower returns, surging inflation and greater anxiety overall — no doubt spawned by the pandemic and increasing global tensions.

Helping clients navigate this “new normal” has become one of advisors’ most important challenges. A recent study, “The Value of Advice,” conducted for Protective by InvestmentNews Research, offers insights into what clients in or near retirement are thinking and how advisors can provide value in these more difficult times. The study reflects responses from advisors and investors, of whom 69% are over 55 years old, and shed light on the services that clients value most from advisors.

What can be inferred from these survey results is that clients overwhelmingly view advisors as sources of investment-related information and advice. Since investments are top of mind among most clients when dealing with their advisor, it is not surprising that the advice they want is largely related to investments. When asked which services they would specifically pay for, 42% said investment management, 39% said estate planning and 38% noted tax planning and tax preparation, followed by comprehensive financial planning and retirement planning, each at 30%.