Nationwide Launches Income Planning Desk to Help Investment Professionals Map Strategy with Retired Clients |
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Written by U. S. Insurance News
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Monday, 16 June 2008 |
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There must be a purpose to their frugality.
New research from Nationwide shows that 57 percent of retirees are
living on their Social Security checks and pension funds alone, leaving
untouched much of their retirement nest egg. Furthermore, of those who
said they live solely on Social Security and pensions, almost 25
percent said they were afraid to spend down their retirement
investments.
John Carter, president of Nationwide Financial Distributors, Inc., said that it’s natural for consumers to “play it safe” regarding their retirement funds.
“But,” he said, “an overly conservative approach can also mean they’re not fully utilizing the resources available to them, leaving themselves potentially vulnerable to market, inflation, or longevity risk.”
While in the past they’ve helped their baby boomer clients accumulate wealth, the challenge now for financial professionals is to assist clients on the verge of retirement use the wealth they’ve accumulated to generate income—and ensure that income is working for them throughout retirement.
Carter said retirees and near-retirees need to have a strategy to help them balance their needs for income, income protection, and potential growth.
To help financial professionals assist their clients in developing this plan, Nationwide has launched Nationwide Income Planning Desk to serve as the professional’s consultant on income solutions for their clients. The Nationwide Income Planning Desk, which received more than 25,000 inquiries in its pilot phase, has proven a valuable resource for investment professionals as they address the complex needs of the new retiree.
The Planning Desk comes at just the right time, according to Nationwide’s research. The Nationwide’s Retirement Income Confidence Survey—a poll of Americans aged 55 to 77 with at least $100,000 in investable assets—also showed that two-thirds of retirees who work with an investment professional are looking for help on how to grow and protect their investments and take income out safely. Of the counsel they receive from their investment professionals, they are least satisfied with advice about how to determine how much income can be safely withdrawn in retirement.
“While the majority of retirees and pre-retirees overall believe their investment professionals are doing a good job, the research indicates there’s opportunity for better client service around growing, protecting and maximizing retirement income,” Carter said.
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