Let’s talk about retirement

In this Raconteur article, Colette Dunn, a consultant in Milliman’s London office, summarizes key conversations retirement advisers need to have with individuals during preretirement and at-retirement stages. Here is an excerpt:

Retirement has also become less of a definite line in the sand and has evolved into a journey where people gradually work less. A total of 76 per cent of those polled for the 2012 Attitudes to Pensions survey said that they would do some paid work beyond the SPA.

Many people have existing pension provision and the number of people with some form of pension will increase as a result of auto-enrolment. However, people are often disengaged with the process of saving for their retirement. Of those questioned in the survey, 62 per cent with a private pension still had no idea or only a vague idea of what their retirement income would be.

There is a need to engage with people about their retirement savings. Once people get into their 50s, retirement seems much more real and within reach. This is a key time to start a conversation with people about getting a better understanding of what income they will receive in retirement and, if necessary, how they can improve it.

Starting a conversation with people in their 50s or late-40s is key as they can be brought on board to go through the life stages; taking them from pre-retirement to the eventual point of retirement and onwards through retirement where their needs will continue to evolve.

In many cases there is currently a disjoint with the “conversation” that the financial services industry has with individuals and this needs to be resolved. There are signs that some in the industry are starting to acknowledge the need to get closer to customers as they approach retirement and this trend needs to grow.

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