Determining your client's retirement income style

As the baby boomers reach retirement, financial professionals must solve new problems for clients. Retirement income is different as clients shift their focus from maximizing wealth to creating sustainable income. Clients face a greater range of risks, including longevity risk, market and the newly emergent sequence of returns risk, and personal spending shock risks. Each risk requires different income tools and risk management techniques. This presentation shows how advisors who are willing to integrate a broader range of retirement tools can better serve clients with strategies that manage these new risks and accommodate different consumer preferences related to their personal retirement income styles. 10 minutes I. Describe current state of retirement income planning A. Financial Planning Association’s taxonomy B. A Broader Survey of strategies C. Existing methods for retirees to identify a strategy 10 minutes II. Describe the six retirement income factors A. Two main factors B. Four secondary factors 15 minutes III. Use Factors to Define Retirement Income Styles through RISA Matrix A. Total Return B. Protected Income C. Risk Wrap D. Time Segmentation 5 minutes IV. Build a Retirement Income Framework A. Matching Goals to Liabilities B. Retirement Income Funding 10 minutes VII. Conclusions 10 minutes - Q&A