Retirement Ready: Supporting Experienced Financial Professionals Who Want to Help Maximize Sustainable Retirement Income for Their Clients.
Over the next 20 years, more than 76 million Americans born between 1946 and 1964 will transition into retirement1 converting approximately $8.4 trillion in wealth.2 This “de-accumulation” phase embodies a new risk for a record number of future retirees. As a financial professional, you need to have the tools and wherewithal to help your clients make this transition.
Three Key Retirement Income Risks
The typical retirement period is now generally considered to be longer than at any time in history—and the cost of health care and other services of concern to retirees continues to rise. As you help your clients navigate their retirement, it’s important to consider the three key retirement income risks they may face.
- Risk #1: Longevity – As life expectancies continue to increase, so too has the possibility that people will outlive their retirement savings. Your clients may have to fund their retirement for 25 years or longer.
- Risk #2: Market Volatility – Poor market conditions can deplete retirement savings faster than your clients may realize.
- Risk #3: Rising Costs – Inflation and the rising costs of goods and services such as health care or medical expenses can erode your clients’ retirement savings.
Retirement Is Different
For years, financial professionals have focused on helping clients accumulate the assets they’ll need for a comfortable retirement. However, the “de-accumulation” phase, when retirement assets are drawn-down, can be considerably more complex and difficult to prepare for. With the possibility of people living a lot longer in retirement, your focus must shift toward developing a retirement income strategy that can help ensure your clients won’t outlive their savings.
The Opportunity for Financial Professionals
Retirement income planning is one of the fastest growing market segments in the financial services industry. In the next 20 years, more than 76 million people will transition into retirement and need new strategies to deal with the de-accumulation of their assets and guaranteed income streams. The Retirement Ready program is available to firms affiliated with John Hancock Financial Network (JHFN). It is a holistic retirement income process that presents the opportunity to help your clients maximize the sustainability of their retirement income and mitigate some of the risks they may face.
The Retirement Ready program is available exclusively to firms affiliated with John Hancock Financial Network (JHFN). It is a holistic retirement income process that presents the opportunity to help your clients maximize the sustainability of their retirement income and mitigate some of the risks they may face.
As a financial professional, you can expand your practice by leveraging the growing demand for help and experience in retirement income solutions. It allows you to affirm an income philosophy, create consultative advice-based relationships, and add value beyond investment performance.
What does this mean to you and your practice?
- Consolidate client assets
When approaching retirement, most clients prefer to deal with one advisor for life if he or she can demonstrate knowledge in both the asset accumulation and income generation phases of investing.
- Extend the length of client relationships
Retirement Ready strategies are customizable and can help you to retain clients throughout the retirement phase of their lives.
- Increase the value of your book of business
- Expand your range of products to gather additional assets while being viewed as the advisor of choice for your clients. Retirement Ready strategies allow you to blend investment and insurance solutions, through JHFN’s open product architecture for greater flexibility and objectivity. This allows you to capture the benefits of both product lines and cement client relationships.
- Gain new clients
The Retirement Ready program is a key differentiator in the marketplace, providing the opportunity to prospect for new clients with the distinct advantages that Retirement Ready has to offer.
Get Retirement Ready
The Retirement Ready program is a turnkey retirement income planning tool that can help you set the stage for creating sustainable income in retirement for your clients while reducing some of the risks they may face.
Retirement Ready finally gives you a methodology to show clients how you are working for them to help meet their retirement income needs, as well as how they can benefit by receiving a specific strategy—customized to their specific needs and designed to help provide certainty in retirement.
The JHFN Retirement Income Process
The Retirement Ready program offers a turnkey, holistic and repeatable retirement income sales process that’s easy to use and implement—and may align with what you already do today.
- A holistic and repeatable sales process designed to create sustainable income in retirement.
- Easy to use and implement, and aligns with what you may already do today.
- Customizable based on client needs.
- Allows you to blend investment and insurance solutions, capturing the benefits of both product lines and cementing client relationships.
- A key differentiator in the marketplace.
Retirement Sustainability Quotient (RSQ)
Through JHFN’s Retirement Ready program, you gain access to a proprietary analyzer that was developed in conjunction with Dr. Moshe Milevsky. The Retirement Sustainability Quotient (RSQ) Analyzer provides guidance on how much of a client’s savings should be allocated to one of three product categories using unique mathematical algorithms.
The three product categories considered are:
- Investments, using a systematic withdrawal plan
- Variable annuities with lifetime income guarantees
- Immediate annuities
Interpreting the RSQ Score
By using the RSQ Analyzer, you can reasonably enhance a client’s chances of success that their investment portfolio will provide an income stream for life. The RSQ Analyzer also assists in optimizing and customizing the RSQ by using a combination of investment products.
It is important to understand that the RSQ Analyzer is not a substitute for suitability analysis. The optimal product allocation will not necessarily be suitable for your client. You will add value for your client by understanding his or her unique circumstances and adjusting the product allocation accordingly.
IMPORTANT: The projections, or other information provided by Retirement Ready, regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results will vary with each use over time.
Becoming Your Client’s Advisor of Choice
When accumulating assets, many individuals do not have all of their retirement savings with a single advisor. However, many investors are beginning to realize that when it comes to creating retirement income, having one advisor—an “advisor of choice”—who knows their complete financial picture may make a difference.
Now you can become your client’s advisor of choice. This turnkey program from JHFN provides the tools, resources and support you need to:
- Leverage product allocation as your core retirement income strategy.
- Refine your client acquisition strategies to capture new clients and assets.
- Place “Retirement Income” at the very core of the Products & Services you provide for your clients.
For more information about the Retirement Ready program, please visit the Retirement Ready microsite. There, you can access all the tools, training, sales, marketing and support resources you need to get started and become a Retirement Ready focused advisor of choice for your clients.
IMPORTANT: The projections or other information generated by the Retirement Ready tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results will vary with each use over time. In most circumstances, Retirement Ready favors products which offer guaranteed income streams such as variable annuities with guaranteed income riders amd single premium immediate annuities due to the lifetime income features associated with these types of products.
Securities offered through Signator Investors, Inc., member FINRA, SIPC.197 Clarendon Street,Boston,MA02116.
1 Social Security Administration Office of Research, Evaluation, and Statistics
2 The Center for Retirement Research at Boston College, January 2011; http://crr.bc.edu/working_papers/how_important_are_intergenerational_transfers_for_baby_boomers.html
3 Source: Moshe A. Milevsky and Thomas S. Salisbury, Asset Allocation and the Transition to Income. The Importance of Product Allocation in the Retirement Risk Zone
4 Source: Fidelity, Adapting a Practice for Retirement Income Planning, 2006
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