A Written Retirement Plan Can Make a Big Difference

As the subject of retirement readiness gains attention from news media and financial services companies, LIMRA Secure Retirement Institute research shows a formal written plan can make a big difference toward a secure retirement.

The top financial concern among Americans is having enough money for a comfortable retirement. Yet 4 in 10 are not confident they will have a secure retirement.

Part of their concern may involve a lack of regular saving. Eighty percent of workers acknowledge they need to save more to be on track for their retirement. Even those who regularly save need to figure out how to manage their savings during retirement years, which can last up to three decades.

Retirees and pre-retirees who work with a financial professional are twice as likely to have developed a written plan for generating income in retirement. They are also more likely to have done comprehensive planning such as calculating retirement assets and estimating income and expenses.

A LIMRA Secure Retirement Institute survey of pre-retirees shows 9 out of 10 say a written plan helps them to better understand their goals, while 3 out of 4 said they were more likely to follow a written retirement plan.

Seventy one percent of people who work with an advisor say they are confident about saving enough for retirement. Only 43 percent who do not work with an advisor express this confidence.

While written retirement plans are beneficial to consumers, they also can be a valuable tool for advisors. Research shows that 83 percent of advisors say a written plan helps them to better understand their client’s goals, which in turn allows them to more effectively help their clients achieve their retirement goals.