According to a recent survey by the Lincoln Long LifeSM Institute, more affluent seniors in their 70s (referred to as “successful seventies” in the survey) are seeking outside financial help to manage their finances throughout their retirement. The survey found that many of these affluent seniors reported managing their finances throughout a long retirement to be much harder than they had envisioned.
Preparing for a Longer Retirement
The Lincoln Long LifeSM survey found that 54 percent of seniors surveyed never considered how long they would spend in retirement, while about 43 percent estimated their retirement to last 22 years. However, research has shown that seniors should plan to be in retirement for 25 to 35 years.
The Lincoln Long LifeSM survey also asked affluent seniors in their 70s to share their advice and experiences with pre-retirees. These seniors reported that the assistance of a professional financial advisor during retirement is just as important as during pre-retirement planning. The survey also found that just 4 out of 10 successful seventies had a primary financial advisor before they retired, but more than 1 out of 2 now work with a financial advisor in retirement.
What it takes to Enjoy Financial Stability in Retirement
- Individuals who used the expertise of financial advisors had “more thorough and more sophisticated” retirement plans.
- Successful seventies with a financial advisor were more likely to consider the number of years they would spend in retirement versus those without a financial advisor (51 percent vs. 41 percent).
- Survey participants working with a financial advisor were more likely to feel as if they had done a “good job overall” planning for their retirement than those without a financial advisor (93 percent vs. 83 percent).
- Survey participants working with a financial advisor were more likely to feel as if they were “planning for changes in economic conditions” than those without a financial advisor (79 percent vs. 70 percent).
- Most of the survey participants (94 percent) cited “retaining their independence” as the main reason for seeking advice from financial advisors during retirement.