Aging & Planning

Formal Retirement Planning - A Win-Win for Advisors and Consumers

Quite simply, they lead to sales

New research from LIMRA Secured Retirement Institute. Visit

LIMRA Secure Retirement Institute (LIMRA SRI) research shows that retirement planning improves outcomes for pre-retirees and retirees. Pre-retirees and retirees who have a formal retirement plan save more, are twice as likely to estimate their expected income and expenses in retirement, and assess how many years their assets will last in retirement. As a result, these consumers are three times as likely to feel prepared for retirement.

However, developing formal retirement plan is time consuming – taking as long as eight to ten hours. According to LIMRA SRI, advisors report they have completed formal retirement income plans for only 35 percent of their retired clients. In fact, more than 50 percent of affluent and high net-worth (HNW) clients (assets $500k or more) do not have formal plans.

What are the incentives for financial professionals?

LIMRA SRI research notes formal retirement plans lead to sales of guaranteed income products. Retirees with a formal retirement plan are 70 percent more likely to own an annuity. In turn, retirees who own an annuity are more confident they will be able to achieve their desired lifestyle in retirement and that their assets will not run out if they live beyond age 90.

Advisors who conduct formal retirement planning with their clients will see other benefits. LIMRA SRI research shows nearly half of the affluent and HNW clients with a formal plan have consolidated 90 percent or more of their assets with their advisors — more than double the clients with similar range of assets but without a plan.

Conducting formal retirement plans also builds client trust. LIMRA SRI research reveals when affluent consumers are deeply engaged in personal retirement planning, 6 in 10 say that their trust in their advisors increases.

This is National Retirement Planning Week. LIMRA SRI hopes this year’s campaign inspires both consumers and advisors to take the time to develop formal written retirement plans. Our research shows it will result in better outcomes for all.