Risky Move: 31% of People Nearing Retirement Don’t Seek Out Retirement Advice
Retirement planning is a complicated and significant step for any individual. However, shockingly almost one-third of Americans between the ages of 55 to 64 are not seeking professional retirement advice. The GOBankingRates study conducted on over 1,000 American adults revealed that retirees prefer to avoid hiring qualified planners or advisors, but this is a risky move.
Without expert advice, people put themselves at risk of making costly mistakes and overlook important aspects of their retirement plans. Seeking professional advice can positively impact an individual’s retirement plan and assist them in achieving their financial goals. Here are a few reasons why you should hire a retirement income planner or advisor.
When You Hire an Advisor, You Buy Priceless Experience
Retirement income planners or advisors have extensive knowledge and experience, which they can draw from when dealing with individual situations. Retirees must put their trust in an experienced advisor to guide them through the complexities of retirement planning. An advisor has exceptional knowledge of potential roadblocks and can set up a person for a better financial future.
Advisors Offer Access to Special Products and Services
When you work with a financial advisor, you gain access to a variety of investment options that are not available through conventional brokerage accounts. Private wealth firms have access to exclusive investment options, which can help an individual protect their investments during a volatile market.
Professional Help Brings Peace of Mind in Uncertain Times
Retirement planning is a significant financial decision, and individuals have to keep their emotions in check. It’s easier said than done, as panic can set in during economic instability or volatility on Wall Street, altering decision-making processes. Advisors can aid retirees in logically navigating the stock market or making legacy planning decisions, income planning, and tax planning.
They Can Bridge Knowledge Gaps Left by Deceased Partners
Widows and widowers, during the period of grief, are often faced with complex financial and/or investment decisions they’ve never faced before. For most couples, only one partner is intimately involved in financial matters, and if that person passes away, it can be a daunting task for the spouse left behind. However, if couples have retained a financial advisor, such an event will be easier or less overwhelming. The surviving spouse would have someone to help and guide them with their plan and make informed financial decisions.
Retirees Can’t Afford To Learn From Their Mistakes
Many life lessons can be learned the hard way, but retirees cannot afford to learn about the complexities of retirement planning through mistakes that are difficult to remedy. Retirees must invest in a qualified planner or advisor for effective retirement planning, which will help protect them from making costly errors.
– According to a 2021 survey by Principal Financial Group, 77% of retirees receiving help from financial advisors perceive having a better understanding of retirement planning and financial management.
– A 2020 survey by the Voya Retirement Coach found that only 16% of Americans were comfortable making decisions about retirement planning without an advisor.
– A 2020 study by the Center for Retirement Research revealed that people who work with financial advisors save more than those who don’t.
Retirement planning is a significant decision that should not be done alone. Seeking professional financial advice or hiring retirement income planners or advisors will mitigate the risks and present more potential for success in your retirement planning journey.
Retirees must understand that planning for retirement is a daunting task that requires experience, knowledge, and expertise. Individuals who don’t seek professional advice or hire a retirement income planner or advisor put themselves at risk of making costly mistakes or overlooking crucial aspects of their retirement plans. However, working with a qualified planner or advisor provides a range of benefits and avoids any potential risks in a person’s retirement planning journey. Thus, seeking professional advice is critical to making informed decisions about your financial future.