What is your approach to retirement savings?

A recent survey by  LIMRA Secure Retirement Institute found that retirees fall into three categories.

The Guarantee Seekers, Estate Planner and Asset Protectors. On paper these people may look the same, but their money mindset can be quite different.  They are looking for different outcomes in retirement from their savings strategies.

It is very important for advisors when advising retirees to understand that mindset is just as, if not more important than the numbers on the page.

Here is an excerpt from the article that gives you more detail about each of the retirement groups.

  • Guarantee Seekers – Want to know that their income won’t disappear.  Have a floor of lifetime guaranteed income and would be interested in converting even more of their savings to a pension-like contractual guarantee.  Want to spend money without the day-to-day worry of how long it has to last.  Want the peace of mind of a certain outcome.
  • Estate Planners –Financially savvy.  Understand equity markets generally outperform risk-free fixed investments.  Can withstand a little volatility to maximize the potential of investments.  Trust their own investment decisions.  Want to maintain personal control over investment decisions and to retain the flexibility to adjust income and spending as needs change over time.
  • Asset Protectors – Have been saving money for a long time.  Do not want to see savings account balance go down.  Will live off the interest and dividends of savings, but uncomfortable invading principal.  Don’t want to be poorer.

You can read the full article here