COLLEGE PLANNING | ESTATE PLANNING | INSURANCE | INVESTING | PORTFOLIO SPOTLIGHT | REAL ESTATE | RETIREMENT | TAX PLANNING

Amid a retirement income crisis , the insurance industry has become more creative in its product development . By Paul R . Samuelson

DRIVE A CHEVY VOLT , FREQUENT PUBLIC TRANSPORTAtion and bike to work when the weather allows .

I ’ m conservative in my spending and investing and relatively immune to fads . I won ’ t be baited into paying extra fees for goods or services when I don ’ t think they ’ re worth the cost .

So readers may find it surprising that I agree with ardent annuity advocates that guaranteed income products hold a rightful place in many clients ’ retirement plans . The marketplace seems to agree : Witness the boom in annuity sales over the past two years .

Retirement Income Planning Is Not For DIYers According to the Center for Retirement Research at Boston

College , nearly half of U . S . households won ’ t be able to sustain their living standards in retirement . While low-income households were at the highest risk , so were 41 % of high-income households .

Those numbers send a message : Retirement is no place for do-it-yourselfers . As I ’ ve long written , financial advisors should warn clients to :

• Work as long as they can ( for many , past 65 ) to accumulate retirement savings and benefit from employers ’ matching contributions ; and

• Delay filing Social Security until they are 70 to optimize monthly , annual and lifetime benefits .

Alarmingly few people make those choices . Some don ’ t have financial advisors who will give it to them straight . Others assume they can do it themselves , applying the 4 % rule using their smartphone calculators .

Excuse my bluntness , but a vanishing number of seasoned investors is up to that job , and even that elite minority risks disaster if ( and usually when ) age and disease impair their capacity to make financial decisions .

No , only sophisticated software makes it possible to do ongoing , complex calculations that can help light a way to lifetime financial security .

Start Somewhere Safe With Social Security

Not every prospect or client is ready to dive into the deep end with longevity calculators and lifetime income needs , but Social Security is a convenient gateway to understanding retirement income .

Who doesn ’ t wonder , “ What can I expect from Social Security ?” Ask your clients if they ’ d like to know . Then , using Social Security software , you can compare their expected benefits based on their work records and their anticipated longevity .

( Remember to counsel clients who want to “ short ” their longevity that , contrary to intuition , many medical conditions don ’ t lower a person ’ s life expectancy ; instead , such conditions merely reduce the number of years someone enjoys relative good health .)

MAY 2024 | FINANCIAL ADVISOR MAGAZINE | 51