Hitting the Retirement Trifecta
In this post, we’ll discuss the opportunity for advisors to pair education around healthy living, as well as create socialization opportunities among their clients to help them fully realize their retirement dreams.
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Hitting the Retirement Trifecta
In order to achieve a long and well-lived life, Americans will need to lead healthy lifestyles, stay socially engaged and build financial security. While most individuals understand that reaching financial independence is a decades-long pursuit, fewer appreciate that good health and social relationships require similar attention and development prior to actual retirement.
To determine how well Americans are doing in each of these three measures, the Stanford Center on Longevity conducted an extensive survey* of Americans across all age groups in the hopes of beginning a discussion among policy makers, industry leaders and the public about proactive approaches to enhance the opportunity presented by unprecedented longevity.
The Trifecta Metrics
The financial metric is comprised of healthy cash flow (earnings, debt levels and emergency funds), growing assets (investments, retirement plans and home ownership) and asset protection (health, life, disability and long-term care coverage).Overall, Americans in 2014 are less financially secure than they were in 2000, especially the least educated. For the age group 65-74, 69 percent are doing well on this financial component. For the pre-retirement age group, 55-64, 68 percent are doing well.
Healthy living is measured by the healthy daily activities undertaken (e.g., exercise, good diet) and the avoidance of risky behaviors (e.g., smoking, drinking). There has been some improvement in personal lifestyle behaviors, though sedentary levels (sitting for five or more hours per day) have increased across all age groups. For the age group 65-74, 60 percent are doing well, while 63 percent of the pre-retirement age group, 55-64, are doing well.
Social engagement is defined by the presence of:
- meaningful relationships (i.e., the interaction and support of a spouse, family and friends), and
- the level of group involvement (i.e., neighbor contact, volunteering, community group participation and working for pay).
The verdict on this component is less encouraging. Reflecting that Baby Boomers are less likely to be married, have weaker ties to family and friends, and tend not to engage in religious or community activities, only 51 percent of the age group 65-74 are doing well. It’s not much different for the pre-retirement age group, ages 55-64, where only 52 percent are doing well.
The advisor’s primary—and perhaps sole—mission is to help individuals achieve their financial goals. This doesn’t mean that the advisor shouldn’t also help clients to achieve success on the other two measures of retirement well-being: good health and social engagement.
There is an opportunity for advisors to pair education around healthy living, as well as create socialization opportunities among their clients to help them fully realize their retirement dreams.
See referenced disclosure (2) at http://blog.americanportfolios.com/disclosures/