Advisors are ramping up their retirement income planning services as waves of Baby Boomers begin to retire, according to a new survey from LIMRA.
The study found that 75% of advisors who offer retirement income services to their clients said they had adjusted their business to do more retirement income planning over the past year. More than four in 10 (44%) said they introduced new retirement-related products or services, and 37% added more components to their financial planning or advice-giving capabilities. In addition, the study found that for four in 10 advisors, retirement planning constitutes half or more of their business activities.
“With 10,000 Boomers turning 65 each day for the next 18 years, advisors are recognizing the substantial market for retirement income planning,” Matt Drinkwater, associate managing director of LIMRA Retirement Research, said in a statement.
Six in 10 advisors said formal written retirement plans play an important role in their practices, offering clients an easy way to discuss product solutions. They also found that written plans lead to higher client retention (81%), and increase their ability to obtain more rollover assets (72%) and attract more referral business (71%).
The findings are based on an online survey of 1,042 financial advisors who had been in their field for more than one year and spent at least 10% of their business activities providing financial planning for retirees and pre-retirees. The survey was conducted in December 2011.