Individuals can also look at protection as part of their ongoing financial planning — buffering against potential shocks from market volatility that may return without sacrificing growth opportunities and ensuring that loved ones are taken care of in the future.
Changing Behaviors Amid The ‘Great Resignation’
At the same time, dislocation is driving Americans to seek advice and new strategies to help them face the future with confidence.
According to The Labor Department’s Job Openings and Labor Turnover Survey, “The Great Resignation” or “Great Reimagination” is still in full swing heading into the summer.
At the same time, 78% of respondents to a survey from Uprise Health said their mental health had been affected by the pandemic, the top driver for that being that they felt overloaded with work.
But as workers start looking toward greener pastures, they should also consider portable—meaning not tied to a single employer—strategies to bolster their financial well-being and provide for that of their loved ones. These go beyond a 401(k) plan. For example, life and disability income insurance can protect family members in the case of death or disability, respectively. Or, in the case of cash value life insurance and its death benefit protection, provide another tax advantaged way to accumulate wealth independent from an employer if a professional has set out on their own or has taken a role at a new company.
The Way Forward
The only certainty is that people are expecting more volatility going forward, because there are so many unknowns right now, from geopolitical issues to their own health. Recognizing this unpredictability in life and the markets is critical in financial planning. Any financial plan must have built in resiliency to help weather potential shocks to their financial lives, like career changes, economic changes, or more.
Today, a majority of consumers are not satisfied with the financial advice they’re getting, and 72% agree it is very or extremely beneficial for financial services companies to address needs beyond just finances (Source: 2020 HLP Research Compendium). We acknowledge that every person has a unique and full life with different goals and priorities, and building a holistic plan to meet those unique goals is critical to achieving financial well-being in these uncertain times. From those building their careers, to those thinking seriously about retirement and those entering or in their early retirement years, we are focused on meeting them where they are.
Going forward, financial professionals must place even more focus on having an open dialogue during client reviews so they can become more attune to the special challenges we are all facing today. Doing so, they will be able to better understand the strategies needed to help clients stay resilient and flexible in the face of personal or economic challenges. Taking a holistic and active approach to financial planning can help people create resilient portfolios that support them in creating not just the portfolio—but the life—of their dreams.
Nick Lane is president of Equitable.