When we meet with prospects and clients, we usually focus solely on the financial aspect of their lives. You want to retire when? Well, let’s make sure you have enough money saved. That’s normally how it goes, right? But money is only one aspect of being retirement ready, even though it’s touted as the main one.  

There are three other key areas to talk through with your prospects and clients: location, work, and health care. Let’s go through each one. 

Location 

Where your clients retire can greatly affect when they retire. This part of the retirement equation has a lot of impact. Your client needs to consider their family, friends, community involvement, climate preferences, taxes, and cost of living. It’s a big decision, and one that may take a while.  

Many people want to move further south where it’s warmer, to the beach, or closer to their family. Here are a few of the top cities to retire in, according to ThinkAdvisor, that can help make your clients’ decision easier.  

Even if your clients aren’t planning on leaving their city, they may be considering moving to a different house, paying off their current home, or downsizing. Each of these options leads to opportunities to help your clients adequately save, budget, and manage their finances.  

Work 

Today’s near-retirees have a different view of work than in the past. While most used to view retirement as their chance to not work, many retirees are continuing to work in retirement. 

A new report from Wells Fargo revealed that the number of seniors (age 65 or older) in the workforce is rising, and should continue to rise in the coming years.¹ That could mean more retirees are going back to work to supplement their retirement income.   

Why? Well, it could be due to the fact that 63% of baby boomers are worried about outliving their savings and 58% are thinking about reducing their expenses in retirement.¹ There’s a need to have more income and fewer expenses, and re-entering the workforce can help with that.  

So, talk with your prospects and clients about whether or not they plan to work in retirement, even if it’s flex- or part-time. Working in retirement is becoming the norm, not the exception.  

A new report from Wells Fargo revealed that the number of seniors (age 65 or older) in the workforce is rising, and should continue to rise in the coming years.¹

Health Care 

Many near-retirees can take their current health care and benefits for granted, and may not be thinking ahead to what health care in retirement looks like. Take the time to prepare them for the world of Medicare.  

Here’s the deal: health care and medical costs have risen so much that a couple that retires at age 65 will pay more than $387,000 in medical costs over the rest of their life.² Other research estimates that an average 65-year-old woman will have to pay $5,200 for health care costs every year.³  

Medicare covers many health care expenses, but it doesn’t cover things like dental, vision, hearing conditions, or long-term care. Your clients would have to pay for those services themselves. Plus, the services that Medicare does cover usually require a deductible, coinsurance, or copayments. Either way, your clients are going to have to continue to pay for health care one way or another.  

That’s something that needs to be brought up with your clients as they make important financial decisions about their retirement.   

Even if your clients are in perfect health now, who knows when that may change. According to the Social Security Administration, on average, men who are 65 will live to age 84 and women who are 65 will live to age 86.5.4 Plus, one in three 65-year-olds will live past age 90, and one in seven will live past age 95.⁴  

These age averages show that we’re living longer than we used to, thanks to medical advancements and technology. This means that your clients’ retirement savings and income needs to last longer, too. So, help them prepare their finances for a long life in retirement. See if products like long-term care insurance or an annuity would be a good fit for their situation, and ensure they have a plan for their health care.  

Here’s the deal: health care and medical costs have risen so much that a couple that retires at age 65 will pay more than $387,000 in medical costs over the rest of their life.²

Having enough money to retire is essential for your prospects and clients, but having a plan for where they’re going to live, whether or not they’ll work, and health care is essential, too. If you aren’t currently addressing these areas during your client meetings, start today. 

Sources: 

1. Wells Fargo Investment Institute. “Reimagining Retirement: Generational Strategies for 21st Century Challenges.” Apr. 2019. https://saf.wellsfargoadvisors.com/emx/dctm/Research/wfii/wfii_reports/Investment_Strategy/reimagining_retirement.pdf  

2. Sergeant, Jacqueline. “U.S. Couples Retiring at 65 Will Pay $387K In Medical Costs, Report Says.” Financial Advisor. Jul. 15, 2019. https://www.fa-mag.com/news/a-couple-retiring-this-year-at-65-can-expect-to-pay--387k-in-medical-costs--report-says-50537.html?section=43  

3. Vanguard. “Planning for health care costs in retirement. Jun 2018. https://pressroom.vanguard.com/nonindexed/Research-Planning-for-healthcare-costs-in-retirement_061918.pdf  

4. Social Security Administration. “Benefits Planner | Life Expectancy.” 2019. https://www.ssa.gov/planners/lifeexpectancy.html  

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