Walking your clients through their ‘significant ages’
Recent financial articles noted that on July 1 the first group of baby boomers began reaching age 70 ½. They represent the leading edge of the 2.5 million boomers who will reach age 70 this year, according to the U.S. Census Bureau.
As financial advisors are well aware, 70 ½ represents the time when their clients must take required minimum distributions (RMD) from their tax-deferred retirement savings.
While this particular age makes an interesting news item, retirement planners understand there are many other significant ages before this time that have far more influence on a person’s long-term retirement income.
When clients know these milestones are approaching, they can make their best decision for each one. For example, when to claim Social Security and how to enroll in Medicare requires a strategy to get the most out of each benefit.
LIMRA Secure Retirement Institute research consistently shows that when people work with an advisor, they are more likely to have completed planning activities such as determining their income, expenses, and health care coverage in retirement. For prepared consumers, the milestone of age 70 ½ arrives with a strategy ready to implement.
The Institute has an infographic that displays important planning ages as signposts along the road to retirement: