When you sit down and start retirement planning with your clients, it's natural to focus on the numbers. After all, maximizing their 401(k), reducing debt and improving savings are all very important, right?
The key to your client's happy retirement can involve more than just the data — mindset plays a big role, as well. Financial professionals must help clients look beyond the dollars and cents, and focus on how additional factors can make a big difference.
Studies have shown that happier people tend to have a healthier lifestyle. They eat better foods, partake in physical activity, tend to experience less stress and sleep better.
All that happiness can pay dividends throughout a lifetime, but especially during retirement. Here are some things to consider as you help clients plan for a happy retirement.
Ask your clients what would make them happy in retirement
Sure, money is important in retirement, but if money weren't a factor, what would make your client's retirement a happy one?
This is a great exercise that can help you and your clients develop your emotional intelligence and build a connection.
Some common answers may include:
- Health — Getting sick and being able to afford it in retirement is a big concern for many Americans. Building a healthy lifestyle (and that includes mindset) with exercise and plenty of activity can boost your client's well-being.
- Relationships — Most people want to spend time with their loved ones and family. Having social interaction matters. It's a great way to get active and helps reduce loneliness.
- Purpose — Chances are, your clients have something that is near and dear to their hearts. Maybe it's volunteering for an organization or honing a craft. Retirement provides the perfect opportunity for people to engage with their passions.
- Reduced stress — It's hard to completely eliminate stress from life. Help your clients reduce stress by first understanding their fears. Then work together to develop solutions that make them feel more comfortable.
This exercise can reveal quite a bit about what your clients are thinking and what they view as their ideal retirement. Listen closely to their responses and together you can come up with strategies to help get them there.
Communicate how mindset matters
It's natural for your clients to feel stressed about money and their finances. After all, retirement is often a great unknown, and that means there is a lot of uncertainty. So you may want to focus on how you can help remove some of that financial stress.
Something else you can encourage them to do is practice gratitude. (This is something that can help your own business, too.) Practicing gratitude might seem small, but it has a variety of benefits including improved sleep, mental health, self-esteem and empathy.
Getting your clients into a long-term positive mindset can pay off in more than just financial dividends, so it's worth it to discuss mindset with them during your appointments.
Go beyond the basics with your financial education
A goal of many financial representatives is to give your clients a solid foundation. That means giving them the tools and education they need. You can cover everything from basic financial terms to common retirement questions and explaining expenses and budgeting basics. But to really help build a long-standing trust with your clients, it pays to go beyond general education and into building a relationship and rapport with them.
When your clients trust you, they're often much more willing to open up and share their hopes, fears and concerns for the future. With a better understanding of their mindsets and motivations, you'll be much more effective in helping them plan for their retirement.
Learn more about helping your clients set smart and realistic retirement goals.
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