Five strategies to avoid crisis in retirement

By Lauren McNitt

ProducersWEB


The nation is facing a retirement crisis, but advisors can help by teaching their clients saving and investment strategies.

Households of working Americans may face as much as a 28 percent drop in income in retirement, while 4 in 10 retirees are reporting they don’t have enough money, according to a new Fidelity investments analysis. In other words, many Americans are heading toward a retirement where their standard of living will decrease significantly.

Fidelity’s analysis says there are five ways people can improve their monthly income in retirement:
    1. Adjusting their asset allocation:

    Nearly a quarter of Americans are invested too conservatively — based on their current age and planned retirement date — and are losing out on the long-term potential of stocks, Fidelity says.

    2. Increased savings:

    Many Americans are not fully benefiting from the tax advantages/deferred savings potential of their workplace or individual retirement accounts. Fidelity says this is especially important for younger investors.

    3. Adjusting retirement date:

    The traditional retirement age is 65, but delaying retirement can help preserve assets and give investors a better chance of not outliving their income in retirement.

    4. Annuitizing retirement assets:

    Annuities can be important tools for ensuring savings last through retirement, according to Fidelity.

    5. Tapping into home equity:

    Home equity can be leveraged through downsizing.
Do you agree with these five steps? Are there any additional strategies you share with your clients? How many of your clients are concerned about outliving their retirement income?