“Failing to plan is planning to fail.” Most people have heard the adage, and it’s an all-too-appropriate point for 401k advisors, sponsors and participants to keep in mind.
A recent study from LIMRA Secure Retirement Institute (LIMRA SRI) highlights the worth of taking time to create a formal retirement plan.
“Retirement planning can be challenging for everyone that is involved. For clients, it can be stressful to plan the golden years of your life and consider the possible costs. For advisors, it can be a drawn-out process that involves a lot of personal questions and proper asset gathering,” LIMRA SRI noted in a report released last week.
“However, new…research suggests that this process of creating a retirement plan helps both clients and advisors achieve their desired goals.”
Even better, it bolsters the advisor-client relationship, as well.
The process makes it easier for both parties to get on the same page. In turn, clients gain peace of mind in knowing their advisor understands their needs. The end result? Happy customers (and hopefully improved retirement outcomes).
Data back it up. LIMRA SRI’s survey of pre-retirees and retirees found:
- Almost two-thirds of respondents with a formal retirement plan said their advisor gets them and knows their long-term goals. Only around a third of those without a plan said the same.
- More than half (56 percent) with a plan felt advisor fees were an excellent value considering the services provided. Just 28 percent of clients without a plan agreed.
- Over two times as many respondents with a plan (54 percent) said their advisor puts their interests first compared to respondents without a plan (25 percent said as much).
“In total, 65 percent of those surveyed with a formal retirement plan said they were extremely satisfied with the advisor, compared to less than one-third of those without a formal plan,” LIMRA concluded, adding, “Almost one-third of those with a plan say they are very confident they’ll be able to live their desired retirement lifestyle; less than 10 percent of those without a plan feel the same way.”
Jessa Claeys is a writer, editor and graphic designer.
