The Top 6 Concerns Your Clients are Most Worried About

Chloe Schmidt

By: Chloe Schmidt, Marketing Consultant at Asset Marketing Systems

Originally Written: October 26th, 2017
Updated: May 30th, 2024

As individuals approach retirement, they often find themselves confronted with a myriad of concerns regarding their financial future. Financial advisors play a crucial role in helping clients navigate these uncertainties, providing guidance and strategies to alleviate their worries. In this blog, we’ll delve into the top six concerns that financial advisors’ clients are most worried about and discuss strategies to address them effectively.

1. Outliving Their Money

One of the most significant fears among retirees is the possibility of outliving their savings. In fact, a recent study found that 43% of Americans have this worry. With increasing life expectancies, this concern is entirely valid. Financial advisors can address this by implementing sustainable withdrawal strategies, incorporating diversified portfolios, and considering annuities or other guaranteed income solutions to provide a steady stream of income throughout retirement.

2. Flexibility/Liquidity of Their Money

Clients often worry about having access to their funds when unexpected expenses arise or when they want to seize investment opportunities. Financial advisors can alleviate this concern by creating a well-balanced portfolio that includes both liquid assets and long-term financial vehicles. Additionally, establishing emergency funds and exploring flexible withdrawal options can provide clients with the financial flexibility they desire.

3. Maintaining Their Lifestyle Through Retirement

Maintaining one’s desired lifestyle during retirement is a top priority for many clients. Financial advisors can help clients achieve this by conducting comprehensive retirement income planning, which takes into account their spending habits, desired activities, and potential healthcare costs. By creating a personalized retirement income strategy, clients can feel more confident about sustaining their lifestyle throughout their golden years.

4. Protecting Their Premium

The fear of market volatility and the potential loss of hard-earned savings can keep clients up at night. To mitigate this concern, financial advisors can recommend a combination of asset protection strategies, such as diversification, asset allocation, and risk management techniques like insurance products. By safeguarding their funds against market downturns, clients can feel more secure about the longevity of their wealth.

5. The Availability of Social Security

Many clients rely on Social Security benefits as a crucial component of their retirement income. However, concerns about the program’s sustainability and future benefit levels can create anxiety. It is projected that the Social Security Administration will deplete its excess reserves and only be able to fulfill 77% of retirees’ benefits by 2034. Financial advisors can provide clarity by educating clients about Social Security’s role in their overall retirement plan, optimizing claiming strategies, and exploring alternative income sources to supplement Social Security benefits.

6. The Need for Long-Term Care

As individuals age, the possibility of requiring long-term care, such as nursing home services, becomes a significant concern. A recent study found that 70% of adults 65 years and older will require some form of long-term care at some point in their retirement. Financial advisors can address this by integrating long-term care insurance or exploring other asset protection strategies to cover potential healthcare costs. By proactively planning for healthcare expenses, clients can feel more confident about their ability to afford necessary care without depleting their savings.

In conclusion, addressing the top concerns of financial advisors’ clients requires a holistic approach that encompasses retirement income planning, asset management, risk mitigation, and healthcare considerations. By working closely with a trusted financial advisor, individuals can develop a comprehensive strategy tailored to their unique needs and aspirations, providing them with peace of mind and confidence in their financial future.

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