As baby boomers step into retirement, they are also stepping into the offices of financial advisors.
A study released Thursday by the LIMRA Secure Retirement Institute shows that the amount of retirement planning and pre-retirement planning advisors are doing has grown dramatically in the last five years. Half of all financial advisors say retirement work now makes up most of their business, which is nearly 40 percent higher than in 2011.
“Given so many baby boomers are retiring or preparing for retirement, it is not surprising that advisors are seeing more of their business dominated by the needs of these consumers,” says Jafor Iqbal, assistant vice president of the LIMRA Secure Retirement Institute. “The institute estimates that retiree households will control more than half of all investable assets, or $25 trillion, by 2023.
“Managing these assets and their de-accumulation for their clients will be very important for the foreseeable future.”
The study found advisors have expanded their retirement income planning services significantly since 2011. The number of advisors offering Social Security claiming strategies has more than doubled, from 33 percent in 2011 to 70 percent this year. More advisors are also offering required minimum distribution planning, long-term care planning, sequence-of-withdrawal planning and defined benefit pension claiming strategies. Eighty percent of advisors say they are spending more time on retirement income planning.