At the beginning of 2020, we could have made many predictions, and none would have even come close to the year we experienced. With consumer confidence faltering, it’s normal to think about retirement and how the COVID-19 pandemic impacts our later years.
When talking to near-retirees and workers, it’s clear that many are cautious and a little worried about retirement planning. Moving into 2021, there’s pessimism regarding the economic outlook. According to a Principal Financial Group survey, three in four workers believe that their retirement efforts are being negatively affected by the global pandemic. As a result, the same number of people foresee accumulated retirement savings reductions.
Of course, the accumulation of funds is one of the biggest questions in retirement planning. In a recent survey, less than 60% close to retirement said they have confidence in this area. Across all workers, this same percentage is thought to be just under 45%. As a result of recent global events, retirees and workers are making big changes to how they live. For example, over one-third plan to spend less money. Elsewhere, 29% want to save more, 25% want to pay down debt, and a similar percentage noted a motivation to pay closer attention to financial accounts.
It’s interesting to note where workers and near-retirees plan to save their money in the coming year too. The results were as follows:
• 57% – traditional savings accounts
• 54% – employer-sponsored retirement plan
• 43% – IRA (23% traditional and 20% Roth IRA)
• 31% – checking account
After a long and difficult year in 2020, it seems consumers will place tremendous importance on financial health in 2021. Consequently, the demand for financial advice will inevitably increase. Despite all the changes recently, one positive element is the mindset of consumers. In one study, a positive mindset is going to be adopted by 87% of retirees and 71% of workers.
Preparing for Retirement
We mentioned the growing need for advice, and 40% of respondents in the Principal survey admitted to now using financial professionals compared to 37% before the pandemic. In retirees, this jumped to 57% from 45% from the first to the last quarter in 2020. How do financial professionals help in retirement planning? You, as a financial professional, can help in the following areas:
• Savings Plan – As many as half of all workers feel as though they lack a retirement savings plan, which needs to change. Less than 15% of people are very confident in the potential for a comfortable retirement, so a savings plan is a great start towards saving enough to reach retirement goals.
• Retirement Picture – Do they have a picture of retirement? Do they imagine what it will look like? Do they know how each day will go and how they’ll spend their time? Over 60% of workers aren’t ready for this sort of conversation, so a financial professional will develop an appropriate plan.
• Education – Often, people put retirement to the back of their minds simply because they don’t understand certain intricacies that come with the process. Fortunately, you deal with retirement daily and can help to boost their understanding. By working with a professional, they want to ease worries about market volatility and feel more secure about meeting basic retirement needs.
• Specific Advice – Finally, each consumer is unique, and our tailored advice helps meet their needs as they evolve. While some need advice on managing funds in retirement, others want help choosing investment options. Many workers also need help with Medicaid/Medicare and claiming Social Security benefits.
Ultimately, this is an uncertain time for all retirees and workers. Financial professionals around the country have a duty to provide tailored advice to ease concerns, build a retirement plan, and help put people on the right path to achieve their retirement goals.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.
Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.
