What’s ahead for the retirement advisor space? Opportunity, if recent IMCA research conducted in conjunction with Cerulli Associates is any indication.
Soon-to-be retirees are facing a shortfall of advisors, lingering memories (and damage) from the 2008 financial crisis and an increasing need for financial education—and they’ll look to financial professionals for help.
The second quarter 2016 IMCA Research Quarterly, Challenges Facing the Next Wave of Retirees, examines a range of retirement factors, including age demographics, advisor retirement trends, and 401(k) participants’ attitudes about their retirement readiness. Here’s what it found:
More demand for retirement planning. The Denver-based advisor advocacy organization reports that nearly 17 percent of the U.S. population will be age 65 or older by 2020, and more than half will be age 45 or older by 2060, citing U.S. Census data.
Playing catchup. Almost 70 percent of 401(k) participants between the ages of 60 and 69 believe they are behind in saving for retirement, while only 15 percent between the ages of 40 and 49 believe they are on track saving for retirement.
A shrinking advisor pool. The average advisor age is 50 years old and 36 percent of advisors plan to retire within the next 14 years.
Fiduciary expectations. On average, 76 percent of clients over age 50 consider the primary responsibility of their advisor as fiduciary in nature.
Ranging attitudes about financial goals. Only 21 percent of households in their thirties consider standard of living in retirement an important financial goal, compared to 52 percent of households in their fifties.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
