BankInvestmentConsultant article by Charles Paikert
Increasing life expectancies and better health among seniors will change how retirement planners advice older clients, BankInvestmentConsultant writes.
Living Longer and Betterretirement planning
People are living longer: the oldest person is 116 years old, and the U.S. now has 70,000 people over 100 — twice as many as 20 years ago, according to U.S. Census Bureau data cited by the publication. By 2050, the number of Americans over 65 is projected to reach 84 million, almost double what it was in 2012, according to census data cited by BankInvestmentConsultant.
What’s more, advances in medical technology such as organ replacement and prosthetics are changing not only how long people live, but what they do in their old age, BankInvestmentConsultant writes.
Considering the Costs
All these factors will make it more difficult for financial planners to properly advise their clients, according to the publication.
For some, such as Steven Podnos, principal of Wealth Care in Cocoa Beach, Fla., the answer to increasing longevity is to tell clients to keep working longer, BankInvestmentConsultant writes. Others encourage clients to wait until turning 70 to claim Social Security benefits, according to the publication.
Work past retirement age doesn’t have to be full-time, but there’s “no reason they can’t work until their 70s,” Podnos tells the publication. Many are doing just that: 225 of the American workforce is over 55, according to Bureau of Labor Statistics data cited by BankInvestmentConsultant.
Employers are also realizing that older workers can be a boon rather than a liability, according to the publication.
Virtual reality can make employment for people over 50 even easier: physical constraints will no longer play as big a role when someone can work remotely, Jeremy Bailenson, founding director of Stanford University’s Virtual Human Interaction Lab, tells BankInvestmentConsultant.
Not Just About the Money
Ellen Siegel, an advisor based in Miami, says where and how her clients live is key to ensure a comfortable retirement, particularly for those considering continuing-care communities, the publication writes. Geographical location is often another issue, she tells BankInvestmentConsultant.
To cope with expenses, some advisors recommend that client take out reverse mortgages, according to the publication. Annuities and long-term care insurance, while controversial, should also be considered, advisors tell BankInvestmentConsultant. Long-term care insurance should also not be overlooked, they say. What’s more, new products, such as hybrid insurance and annuity products, are constantly coming to the market and advisors should keep abreast of them, BankInvestmentConsultant writes.
Many advisors also focus on areas of senior living outside of work and home, such as staying active through volunteering, BankInvestmentConsultant writes. Siegel advises older clients to retain a life coach to help steer them, according to the publication.