Do you have a strategy for answering common questions about retirement? Being prepared to help educate your clients is a quick and easy way to build trust.
Consider having this list of retirement questions and answers on hand so you can quickly and easily answer client questions during your next meeting.
Retirement FAQs
When can I retire?
The answer to this question, of course, varies dramatically from person to person. Work with your clients to consider several factors including their current retirement savings, health, working situation and debt.
Many people end up retiring earlier than planned due to job loss or health conditions. So, it's critical that your clients take a holistic view of their total financial outlook and plan realistically from there.
Help your clients create an annual retirement review checklist that they can start using right now to ensure they are staying on track and make adjustments as needed.
How much should I have saved for retirement?
Here's another big question that also varies from person to person. If your client has a higher net worth or lofty plans for expensive trips or purchases, then they'll likely need more savings to cover those expenses.
But the truth is many people aren't on track for having enough savings for all three phases of their retirement — from the honeymoon stage to end-of-life planning. There are often a lot of unexpected expenses from health care to long-term care in retirement that your clients also need to consider and plan for.
One key is setting realistic financial goals that match their ability to save right now and can help make those future plans a reality.
Should I save for retirement or pay off debt?
With the rising amount of debt many Americans face, your clients might be struggling to decide where to focus.
The first thing you need to do is get the full picture when it comes to your client's debt. From there, you can work with your client to help them make better decisions on which approach they should take.
Remember, retirement is important, but carrying significant debt can also have a real impact on your client's potential long-term income.
What costs should I plan for in retirement?
Just because your client is heading into retirement doesn't mean their expenses will dramatically drop off — the opposite, in fact, may be true. One way to measure potential expenses is to have your client try this exercise: track spending over the course of a few months and see where finances are going.
From there, you and your client will have a more realistic example of the costs and expenses they will likely continue to face in retirement. Then you will can see where your client can cut expenses in the future or if they will need to increase savings to match spending.
When should I take my Social Security?
Your client might expect that their future Social Security benefits will cover a good chunk of their retirement income. However, depending on your client's work history and earnings, that might not actually be the case.
Your client can create an account at My Social Security which will give them up to date information on their expected benefits. This is valuable information that can help your client plan some strategies around the rest of their retirement income.
If your client hasn't retired yet, now is the time to work with them to develop a plan.
How do I plan for medical costs?
A reality that many retirees learn too late is that Medicare will not cover all of their health care costs. In fact, as retirees age, health care costs often become the biggest expenses they face.
It's crucial to understand and account for potential health issues and their associated costs as well as long-term care plans. Ignoring some of these costs could have a dramatic impact on your client's long-term savings. Consider this, as well as your client's current health and lifestyle. Transitioning to a healthier lifestyle now can make a difference in the decades to come.
The above list includes some common retirement questions you may face from your clients. Having answers to questions like this ready ahead of time can help them feel better about their retirement plans and establish you as a trusted resource.
Learn more about how you can help your clients set smart financial goals for their retirement.
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