Risky Move: 31% of People Nearing Retirement Don’t Seek Out Retirement Advice
As retirement approaches, one of the most critical periods in a person’s financial life is the years leading up to it. Unfortunately, a recently published survey by GOBankingRates found that 31% of American adults aged 55 to 64 are taking a risky and potentially expensive approach to retirement planning—they’re doing it alone.
Financial planners agree that taking this path can lead to costly mistakes and the omission of crucial aspects of one’s retirement plan. Working with a qualified retirement planner or advisor can offer a range of benefits and help avoid potential risks in the retirement planning journey.
Here are some reasons to consider working with a financial advisor:
When You Hire an Advisor, You Buy Priceless Experience
Many people approaching retirement assume they don’t require the guidance of a professional retirement planner or advisor; however, this is an expensive misconception. A professional advisor brings experience gleaned from working with hundreds of unique situations and goals over the years. Advisors know the potential roadblocks ahead and can use their cumulative knowledge and experience to set their clients up for a better financial future.
Advisors Offer Access to Special Products and Services
Hiring a professional financial advisor grants access to investments that are not readily available to the average person. Advisors can connect clients with investments that everyday people can’t get through a brokerage account, offering better protection for their investments during market volatility.
Professional Help Brings Peace of Mind in Uncertain Times
Retirement planning generally requires a neutral approach, removing emotions from the process. For many retirees, this is easier said than done, especially when approaching market instability or volatility. By working with an advisor, retirees receive impartial and logical direction.
They Can Bridge Knowledge Gaps Left by Deceased Partners
Suppose one partner in a marriage manages the finances and passes away. In that case, the surviving spouse can find themselves facing complex financial decisions without an understanding of previous investment strategies or the terms of the investment. In these scenarios, an advisor can provide guidance and ensure that the surviving partner makes sound financial decisions.
Retirees Can’t Afford To Learn From Their Mistakes
Retirees do not have the luxury of time to correct costly mistakes in their investment strategy. Hiring an advisor can help retirees optimize their financial planning by minimizing taxes, creating a sustainable income stream, and avoiding costly errors.
– According to the survey, only 37% of respondents consult with a financial planner or advisor about retirement plans.
– 19% of respondents between the ages of 18 and 24 have already started saving for retirement.
– According to a study by the National Institute on Retirement Security, retirement plans are inadequate for an estimated 84% of working households, leaving many people without the resources to support themselves in retirement.
Working with a qualified financial planner or advisor offers a range of benefits and helps avoid potential risks in the retirement planning journey. Choosing to navigate the complexities of retirement planning alone could lead to costly and preventable errors made too late in the process.
In conclusion, the years leading up to retirement are critical to secure financial stability in retirement. Seek the guidance of a qualified retirement planner or advisor to avoid potential costly mistakes and ensure a stable financial future.