01-08-2025
What Today's Retirees Need From Their Financial Advisors
Robert Cannon, Managing Partner of ExperityCPA.
Retirement isn't what it used to be. Not long ago, it often meant leaving the workforce at 65, collecting a pension and settling into a predictable, quieter chapter of life. But today's retirees are rewriting that script entirely. People are living longer, and many stay active well into their 70s and 80s. Meanwhile, retirees are also facing a complex financial environment.
This shift is reshaping the way advisors support clients. Retirement planning now requires a more dynamic, personalized and emotionally attuned approach because longevity, purpose, healthcare and taxes all play a larger role than ever before.
Here's how I believe advisors can adapt.
Consider how longevity changes the game.
One of the most significant forces reshaping retirement is longer life expectancy. A healthy 65-year-old today may be planning for 25 or even 30 years of retirement. That kind of timeline brings new challenges and opportunities. Retirement planning is no longer about just reaching a number, but making that number last over decades.
As an advisor, you'll need to shift your focus from accumulation to long-term sustainability. This includes building income strategies that can adapt over time, preparing for inflation and market downturns and creating flexible portfolios that evolve with clients' lives.
Recognize that many retirees look beyond dollars and search for meaning.
More and more, I'm finding that retirees are asking not only, 'Do I have enough?' but also, 'What comes next?' Financial security is important, but it's often a means to something deeper. Many clients see retirement as a new beginning. Some pursue second careers, passion projects or world travel. One couple I worked with sold their business and used their next chapter to launch a nonprofit focused on environmental education. For them, that wasn't just retirement; it was reinvention.
Advisors today need to help align financial plans with what truly matters to clients. Purpose, fulfillment and legacy aren't side topics; they're central to the conversation.
Don't overlook the impact of healthcare expenses.
Healthcare is one of the most unpredictable and potentially expensive aspects of retirement. While Medicare might provide a foundation, it doesn't cover everything. Costs related to long-term care, like assisted living, in-home support or memory care, can quickly derail an otherwise solid plan.
That's why it's so important to address healthcare proactively. Whether you help your clients explore long-term care insurance, set aside dedicated funds or plan for the possibility of future care needs, preparing for health-related expenses is a crucial part of modern retirement planning.
Remember that tax planning is more important than ever.
I've seen many retirees surprised by how much of an impact taxes can have on their retirement income. Required minimum distributions, the taxation of Social Security benefits and other state-specific rules can create a hefty and unexpected tax burden.
Educate your clients on the importance of thoughtful tax planning, such as phased Roth conversions, tax-efficient withdrawal strategies and charitable giving tools, for example. This can help retirees keep more of what they've earned and increase the longevity of their portfolios. It's no longer just about investment returns; it's also about how much clients keep after taxes.
Prioritize flexibility.
The idea of a single retirement 'formula' is outdated. Some clients want to retire early. Others prefer to keep working part-time or spend freely while they're healthiest. The modern retirement experience is as diverse as the people living it.
That's why flexibility is essential. You can use strategies like bucketing, dynamic withdrawal models and individualized risk assessments to design plans for clients that can adapt over time. Retirement isn't a single event. It's a series of transitions, and planning should reflect that reality.
Remember that while technology can help, people still matter most.
As expectations evolve, so does the client experience. In my experience, many retirees, especially those in younger generations like Gen-X, appreciate the convenience of client portals, secure messaging and real-time access to their financial data. Technology is improving transparency, responsiveness and engagement.
Still, remember that no app can replace the value of human connection. A quiet conversation or a simple check-in often reveals more than a full report. The emotional side of retirement is real. Many retirees experience identity shifts, family changes and fears about the future. The most effective advisors are not just financial professionals; they're trusted guides through one of life's biggest transitions.
Meeting The Moment
Today's retirees are looking for more than financial plans. They want guidance, clarity and a partner who can help them navigate both the numbers and the nuance of retirement. As the landscape continues to evolve, so must the way advisors serve.
By combining financial expertise with empathy, embracing technology without losing the human touch and creating flexible, purpose-driven plans, advisors can not only help clients retire but also help them thrive in the years that follow.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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