Financial services companies have traditionally used a number of pre-retirement life events as "springboards" to contact clients and prospects for the purpose of selling their products and services. We are all pretty familiar with those events, which include college graduation, marriage, buying a house, birth of a child, etc. All of these common occurrences, which can happen over the first 30 years of one’s adult life, created a different set of financial and lifestyle needs, and prompted financial advisors and their clients to consider new, modified, or more of the same product or service solutions.

But now with longevity being a major factor (and risk) for most Americans, there will be perhaps another 30 years of important happenings at the end of our lives. So, looking at this stage of life, what are the key life event decision triggers for the post retirees? And will providers of financial services be prepared to work with their clients through these latter life stages, armed with appropriate solutions?

Some Key Life Events for Retirees
It is generally regarded that the following life events will prompt someone to review his or her financial situation during retirement:

• Assisted living or nursing home care is needed.
• There is a wish on the part of the retiree to move into a smaller residence, to a different geographical region, or into an assisted living.
• The retiree or spouse experiences a serious health issue.
• The death of a spouse.

Typically, the life events over the first part of our lives are uplifting, joyous occasions, while the life events during the last part of our lives are more often negative, heart wrenching times. The important point, is that the relationship between the client and financial advisor be objective, caring, and service oriented, so that the client feels comfortable in asking for advice at these difficult moments.

Where to Focus Your Efforts
Whether you are building strategies for existing clients or are prospecting for newly retired clients, it is important to recognize how often these life events occur and prioritize those that fit with your most desirable service and product solutions.

DSG recently conducted a research study to examine the frequency of these events affecting retirees during the past three years. There were 464 respondents, all retirees in the 55+ age group. You may find the answers surprising...

We asked each of the respondents the question, "Which of the following events have occurred in the past three years?"

• Your parents have needed assisted living or nursing care.
• You have received a sizeable inheritance.
• You have moved.
• You have had serious health issues.
• You have experienced the death of a spouse.

The results are shown on the following table, ranked in order of frequency:

It is interesting to note that 55% of the total surveyed retirees, and 64% of the younger retirees in the 55-64 age group, have had at least one of these events happen to them. Therefore the opportunity for you to provide assistance is great.

Naturally by overlaying income and other demographic information, you can determine which life events you should address with your particular service and product solutions.

Matching Solutions to Life Events
Now let’s look at what the retiree’s needs might be for each of these life events. I have put together a "Match Game" of sorts to see how you might assess each situation and provide a solution(s) for your client. On the following table, consider how you would match the possible solutions to the situation.

I’m not trying to make light of this situation. Each of these events is significant and life altering. But this brief exercise helps to illustrate that each one of these situations can require more than one solution. Although you may think that some of these solutions are outside of your scope of services. I would argue they are not. Those with single product solutions will find it difficult to break through to retirees with decades of built up skepticism. Their number one need at this point in their lives is trusted advice. Not being able to satisfy that primary need will keep you from successfully cracking this large and lucrative market segment.

The Importance of Relationship Selling
While it may be difficult to deal with these situations when, or after, they happen, the key is to educate your existing and prospective clients throughout their vital years, so they can begin to prepare for the problems and decisions they will face during these trying times. Frank discussions are necessary to help your clients understand what lies ahead and to map out strategies well beforehand. These strategies can then be discussed with children and other family members in order to alleviate the stress at the moment these events occur. Ideally, your clients will have you on their short list of trusted people to contact when the difficult times arise.

The strong relationships you have established and the broad array of advice and services you have provided for clients during their pre-retirement years is critical to your being thought of as an even more important family advisor and confidante during their later years.

If you think that your job is over after helping your clients plan for a happy and secure retirement, you’re wrong. The last 20 or 30 years of their lives will present financially and emotionally challenging events that require even more guidance, patience and trust. And an even broader portfolio of service and product solutions! Are you appropriately prepared to provide a lifetime’s worth of guidance for these important life events?DSG

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