Your Boomer clients are feeling good about their retirement. But a few worries keep them up at night.
Mike Van Wyk, Capital Group’s vice president of Customer Research & Insights, shared new research on the unique generational needs of high net worth clients at Schwab IMPACT 2018. During his presentation, titled "Millennials to Boomers: Better high net worth planning by generation,” Van Wyk revealed data on Boomers and corresponding actions advisors might consider to serve them best.
Happy with retirement
Worried about shocks to their retirement
Boomers: Experienced with change
Boomer persona: Retirement came earlier than expected.
Retired Boomers say retirement is even better than they thought it would be and their financial situation is rosier than they expected. Many Boomers retired earlier than they planned for various reasons. But they’re OK with that.
Boomers, though, do have some sleep loss issues. Many worry about the threat of unexpected costs, especially with health care, long-term care and taxes. Mitigating such risks to a comfortable retirement is a top goal. This generation has lived through several market cycles and understands the power of long-term planning.
Boomer action plan for advisors: Manage the unexpected.
Prep them for surprises. As pointed out above, retirement doesn’t come on time for most Boomers. About a third retire earlier than expected because they are financially ready. For the rest, early retirement came due to health issues, job changes or a family situation.
Help them transition. Earlier-than-expected retirement can be effectively navigated with advice. Boomers are looking for help.
Get up to speed on health care. Evolve your knowledge to include health care issues. Health care costs are higher than expected for 40% of Boomers. Another 40% will be caregivers for family members at some point during retirement.
Chief Investment Officer of Laird Norton Wealth Management
Gino Perrina, Chief Investment Officer of Laird Norton Wealth Management, discusses his firm’s experiences working with Boomer clients.
More in this series about HNW generations
HNW generations: By the numbers
An at-a-glance look at data that define your clients’ generations
HNW generations: Action plan
Enhance your effectiveness as an advisor by understanding your clients’ generation
More about high net worth:
Capital Group Advisor Generational Attitudes Study, September 2018
Capital Group Investor Generational Attitudes Study, August 2018
Capital Group Wisdom of Experience Survey, December 2017
McKinsey Money in Motion Survey, 2016
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