After a grappling few years overwhelmed with a pandemic, inflation, and economic uncertainty, more workers across all industries are being forced to retire.
A new Edward Jones survey found 40% of clients were pushed into retirement, with cost-of-living increases (29%), financial assistance for family or friends (26%), and the declining value of investments (26%) ranked as the most impactful financial shocks for retirees.
Almost all financial advisors surveyed agree that retirement involves more surprises and challenges than their clients anticipated (97%), while an equal number (98%) agree that preparation, flexibility, and willingness to adapt are key to success in retirement.
“Retirement is often full of unforeseen challenges. Whether it be an involuntary termination or health challenge, the timing of their retirement can be an unexpected challenge itself,” said Jennifer Schoonmaker-Dasch, an Edward Jones financial advisor in Lexington, North Carolina, in a statement.
Specifically, clients struggle the most with developing an income withdrawal strategy (35%) and determining the optimal timing for claiming Social Security benefits (35%).
Edward Jones notes that advisors should serve as advocates for their clients, including helping them track their finances with a proper strategy, and a budget to reduce expenses and pay down debt.
According to the survey, 99% of advisors surveyed agree that clients want to work with an advisor who prepares them holistically for retirement, which may include part-time work or a delayed retirement strategy, Edward Jones reported. Ninety-four percent of financial advisors said they have discussed or would like to discuss deciding how or if their clients should return to work after retiring.
The most common advice offered to clients who want to work in retirement is to embrace an open-minded approach (36%), followed closely by networking for new opportunities (31%) and being willing to work for someone younger than they (30%).
“More and more, we are having conversations with our clients about whether working in retirement might be right for them,” added Schoonmaker-Dasch “Working in retirement may look different for individuals than it did in the peak of their careers, but the right employment opportunity can help provide financial stability and give retirees a sense of purpose.”
SEE ALSO:
- Retirement Could Be A ‘Nightmare’ For Generation X
- How Each Workforce Sees Their Retirement in a Post-Pandemic World
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
