This is powerful information for advisors because it shows them the retirement journey is personal, something that advisors must know if they want to help clients make the most of it—a personal journey that needs to be discussed and examined before clients retire and rethought as they make their way through it. In other words, there is a crucial human factor here that can’t be replaced, outsourced or minimized with fee compression. That ability to help never goes out of style and there is always a need for it, especially if you’re good at it.
One of the biggest trends I have seen in our business is the increased presence and power of Gen X clients. This group is nestled between some much bigger generations and they haven’t made many waves, but they are the first generation to know you have to save in a 401(k) from an early age and that Social Security may not be there. So more 45- and 50-year-olds are walking into my office with close to a million bucks but no real plan or vision for retirement.
They’ve had their heads down for years and are finally looking up and need help developing a more personal plan for what’s next for them. More often than not, they want to start making some work and lifestyle changes that don’t fit the typical playbook, meaning they want to talk about making an impact instead of money, and making sure they don’t duplicate their parents’ personal and career mistakes, some of which were made at the earliest stages of retirement.
Which is a great introduction to secret ingredient No. 3: Understand the honeymoon phase of retirement.
We all know that clients work hard to reach retirement, so it’s not uncommon for them to want to just relax and do nothing for the first few weeks. The problem is, we are creatures of habit, and once those habits settle in, they are hard to break. That can mean a couple of weeks on the couch turn into a couple of months, and the extra weight a client may have put on as a freshman in college pales in comparison with what they put on as an older adult.
Also, if they immediately lose their connection to friends and co-workers, it might be hard for them to reconnect later.
One recent study by Ameriprise found that two-thirds of recent retirees (66%) said they had challenges adapting to retirement. Their difficulties might be compounded by transitions such as a late-in-life divorce, the loss of a loved one, or a health issue that sidelines them and limits their mental or physical ability or robs them of key family members and friends.
For advisors, that means clients need goals and specific things to do in the first 30 days of retirement, not just a pat on the back and a “Way to go!” For example, they might make checklists of things to do to replace their work identities, fill their time, stay relevant and connected, and keep mentally and physically active. That’s how you make the honeymoon phase work for them instead of against them.
As you might expect, I have a handful of other ingredients, things like self-reflection, critical thinking, and (my personal favorite) passing on wisdom rather than wealth. But let’s be honest, I can’t give them all to you here or it wouldn’t really be a secret recipe.
Robert Laura is a best-selling author, nationally syndicated columnist and president of Wealth & Wellness Group. He is a seasoned conference speaker, corporate trainer and the founder of the Certified Professional Retirement Coach designation, which focuses on the non-financial aspects of life after work. He can be reached at [email protected].