Keeping With Tradition

While many workers are continuing in their careers because they like what they do, many are delaying retirement for financial reasons

Not everyone is ready to retire when the calendar says to. In fact, according to a recent US Bureau of Labor Statistics (BLS) jobs report, US workers working past age 65 stands at 32 percent in the first quarter of 2017, with many of these workers putting in part-time hours. Even the 70-something crowd has postponed retirement – to the tune of 19 percent the first quarter of 2017.

A look into the future indicates more of the same. The BLS predicts that by 2024, 36 percent of workers between ages 65 and 69 will be working, which would make the over-65 workers the fastest-growing workplace demographic by that time.

While many workers are continuing in their careers because they like what they do, many are delaying retirement for financial reasons. Particularly within the Baby Boomer generation, today’s veteran workers are experiencing financial burdens from both aging parents and college-aged children. Paying for retirement? That idea goes on the back burner.

Such financial pressures are creating the opportunity for retirement advisors to make a significant impact on the 55+ worker population.

Comprehensive Wellness

For retirement advisors, that impact can be realized in the form of helping employees plan for, and budget for, the unexpected. Such financial wellness programs can bring clarity to employees and help them understand their savings potential – and limitations – and establish a more firm footing on their retirement path.

Here are some key components of a financial wellness program that can help employees improve their retirement portfolios.

A right-fit approach. It makes little sense to build a financial wellness program that speaks to millennials when the majority of plan participants are aged 45+. Also, what are the concerns of the demographic? Financial health assessments go a long way toward helping participants understand their needs and for advisors to see what the employee population’s concerns are.

The right goals. And all of the goals. Older employees may be hyper-focused on retirement, but are they focused on their financial needs while they’re still working? What are their goals today? What goals will they be looking to attain going into retirement? How should they be planning for each goal along their path to retirement?

Shorter-term goals. Nothing motivates participants to stick with their plans than quick, measurable success. Start with a goal that’s attainable, such as paying off a credit card or saving for a new car. As participants are able to measure their progress in the short term, their motivation to continue toward more long-term goals improves.

A budgeted approach. One of the best ways for all participants to save is to be educated on how to budget for savings. Current expenses and salaries should be examined alongside goals to help participants see where they need to be allocating their finances better.

Delayed retirement should be a choice that older workers feel they’re making without financial constraints. By helping them focus on their goals and their approach, retirement advisors can give them the financial tools to help them define retirement their way.

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