Creating a Post-Retirement Checklist for Your Client

Green Settlements Staff

Table of Contents:

  1. Take Stock of the Post-Retirement Budget
  2. Look into Medicare Eligibility and Other Health Insurance Needs
  3. Understand the Ins and Outs of Social Security
  4. Make a Tax Plan
  5. Review Your Client’s Beneficiaries

With an average of 10,000 baby boomers turning 65 every day, the sheer number of seniors exiting the workforce and entering their retirement years is growing at a rapid pace. Another more worrisome statistic points to a lack of preparedness for this major life change: Just one in 10 boomers strongly agree that they are building a large enough nest egg to sustain them through the years.

As a financial adviser, it’s your job to help your senior clients prepare for what lies ahead. Regardless of whether your clients have managed to save a lot or a little, their need for personal finance management doesn’t end when they retire. There are many milestones to prepare for, which is why you should help your clients craft a practical, post-retirement checklist.

Here are a few of the key areas to discuss when advising your senior clients about their future.

Take Stock of the Post-Retirement Budget

Kick off the process by assessing all of your client’s financial documents, assets and savings to get a sense of how they’ll fare five, 10 and 20 years down the road. Once they retire and lose their primary source of income, their entire lifestyle will change—and their spending habits will change, too. Taking stock of where they stand before these changes take place is crucial to their ability to make the shift.

Look into Medicare Eligibility and Other Health Insurance Needs

Healthcare expenses tend to increase as seniors age, so it’s important to make sure your clients understand their coverage options. At age 65, they will be eligible for Medicare, but they may also want to purchase additional health insurance for extra protection.

Understand the Ins and Outs of Social Security

When it comes to social security benefits, timing is everything. Older adults who need the funds tend to file early at 62, while those with a more sizable nest egg can afford to defer their social security benefits until they reach full retirement age at 66 years old.

Make a Tax Plan

With changes to your client’s employment status come changes to their tax status. Retirement plan distributions and social security filings also come into play here, so be sure to take everything into account. If your client has accrued significant assets or property over the years, their taxes could be complicated enough to require the assistance of a certified tax professional.

Review Your Client’s Beneficiaries

Beneficiaries named in your client’s estate plan, trust or life insurance policy should be considered when preparing for retirement, as their financial circumstances may have changed, as well. For example, if your client’s child is the beneficiary of their life insurance policy, but they are financially independent and have no need for the death benefit, your client may consider seeking a life settlement.

Life settlements are often overlooked by policyholders and financial specialists alike; however, they can offer swift financial relief to seniors in need.

If your client is 65 or older and owns a term, whole or universal life insurance policy that they no longer need, they may be eligible for a life settlement.

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