I recently attended The American College of Financial Services Board meeting where there was much discussion on the need for retirement income planning in today’s society. As President Donald Trump begins executing his agenda, investors are expressing a degree of apprehension and have concerns about what might lies ahead and how potential policy changes could impact their retirement. These findings are based on an American College of Financial Services poll of 419 Retirement Income Certified Professional (RICP) designation holders from early January 2017. “Coming out of a highly contested election season, it is no surprise that many retirees feel a bit weary about their retirement security,” said David Littell, Retirement Income Program Co-Director at The American College of Financial Services. “At this moment, investors are feeling worried about what they cannot foresee. We found that Advisors are keenly aware of their client’s moods and recognize that there are no one size fits all retirement plans in the face of an unpredictable future.”
Concerns Over Retirement Security
When Advisors were asked if they were more concerned about the client’s retirement security post-election, more than half (53%) reported that election results have increased their concerns, while 23% felt the election had no impact and 24% believe the election has improved the outlook of their client’s retirement security. Advisors report that client’s leading concerns are focused on potential post-election changes to healthcare 27% and Social Security 22%.
Markets Highs After Election Day
In response to all-time market highs after the election, over half of the Advisors polled (53%), have told their clients to stay the course. The most important way to deal with the uncertainty is for individuals to focus on creating a comprehensive retirement plan, which will help them chart a course for a healthy retirement.
While many believe market volatility is ahead, working with a trusted advisor to develop a retirement plan based on client’s expected future income needs balanced with a current risk profile, is the most important exercise one can go through. Every plan will need to be adjusted as the client’s situation changes and attitudes towards risk subside. “Regardless of what is ahead during this new administration, the bottom line is clear. Advisors need to take this opportunity to sit down, talk with their clients about their current retirement plan and reassure them that they are on the right path for retirement.”
As always, please feel free to contact an EBN consultant to see if we can assist with your retirement planning and your retirement income security.