Message to Pre-retirees: Plan for Competing Financial Goals

Late boomers and pre-retirees have said that saving for retirement is their top objective even when there are many other competing financial goals. Whether it's education for their children, medical/health insurance or home improvements and vacations, there is no shortage of ways to spend a saved dollar. (See chart)

This is where a written financial plan becomes essential. Research findings from LIMRA Secure Retirement Institute show that 3 out of 4 retirees and pre-retirees who have a financial plan said they are more likely to follow it when the plan is written down.

Advisors can help their clients facing competing financial goals by working with them on written financial plans. A written plan can prioritize their goals, making it easier to identify and follow a financial plan best suited for them. The advisor can also suggest specific strategies to strengthen the overall account and help clients approach retirement with more optimism. Secure Retirement Institute findings show 71 percent of non-retired consumers who work with advisors feel confident they are saving enough for retirement. By contrast, only 43 percent who do not work with an advisor say they are confident about their plans.

Predictions of an improving economy could mean more money in your clients' pockets. Now is the time for advisors to help clients prioritize and set a strategy to achieve their goals.