Out like a lion?

As we near the end of winter, the question inevi tably arises as to whether we’ll get a smooth en try into spring or if winter will go out like a lion, battering us with harsh conditions. For those who are among the 10,000 baby boomers retiring ev ery day in the U.S., the conditions under which they are exiting their working years and entering the retirement phase definitely fall into the “going out like a lion” category, as they face daunting economic conditions.

A combination of factors creating those adverse conditions includes rampant inflation, an unsteady market with forecasts of recession and fear of outliving retirement savings as life spans in crease. For women, the situation is more extreme. They, on aver age, have longer lifespans than men. This means that wives often outlive their husbands. When retirement resources become an issue, therefore, women are most likely to experience shortfalls that could impact their quality of life.

According to a number of studies, women also feel less confi dent in their financial preparedness and understanding, and so are at an additional disadvantage compared to men. To compli cate matters, women born in the older generations often took a back seat in financial decisions, and this left them with less knowledge about financial matters and their individual financial situations.

Changing this dynamic is difficult for a couple of reasons. First, the percentage of female financial advisors is far smaller than their male counterparts. And while there are a number of female advisors serving as mentors and role models for women new to the industry, these efforts have yet to make a large impact on the gender disparity in the workforce. This is an area where more needs to be done. Bringing more women into the industry will almost certainly mean bringing more female clients in as well.

Second, women most often head single-parent households, adding financial strain for those in that situation and making them less attractive clients for advisors who are seeking high-income clients.

These factors mean that more financial advisors should make a special effort to reach out to the women who could most use their services. Providing needed education — and confidence — will serve these clients in good stead, especially as they are more likely to become the surviving partner in the marriage.

Studies have shown that the youngest generations — especially Generation Z — are cognizant of retirement planning. In addition, many in those youngest generations hope to retire at a younger age than previous generations, with age 59 as a popular target age to exit the workforce.

This interest in financial planning provides a strong potential entry point for advisors to connect with younger female clients who are motivated to start saving — and who have the advantage of time on their side. While many younger clients may not currently have the high income that makes them the ideal client, a good number will develop careers that bring higher income into the picture later on. Providing the basic support and education

Helping women prepare for, and feel more confident in, their retirement planning is a service that will benefit both the new clients it will bring into the industry and their advisors.

Out like a lamb

While the economic forces are not at their most ideal for current and soon-to-be retirees, more advisors are bringing sophisticated strategies to bear to help the transition into retirement be more of the “out like a lamb” variety.

Annuities have made a big comeback, due to higher interest rates as well as the need for predictable retirement income in an unpredictable economic environment. The variety of products provide a wide set of offerings that meet most financial situations. Indexed products are also growing rapidly in number, with all manner of indexes being devised and providing many options for advisors and clients.

And while life insurance sales, which spiked during the pandemic, have receded somewhat, using life insurance more strategically to help ensure a segment of retirement income that is impervious to economic conditions is something we’re hearing from more advisors now.

As these strategies and others grow to help build resources — and the confidence — of those planning retirement, we’ll be reaching out to learn more about what products and strategies advisors are finding most successful in this changing economic landscape.

If you’d like to share some of your strategies with our readers, please reach out: editor@innemail.com.

John Forcucci Editor-in-chief

Guaranteed Cash-Out Rider

Three opportunities to fully surrender the policy and receive a partial or full return of premiums paid.1

Guaranteed Death Benefits

Between ages 95 and 121 to ensure your client does not outlive their policy.

Accelerated Benefit Riders

Should your client become seriously ill, a full or partial accelerated death benefit may be available.2

1) Cash-Out Rider may not be available on all substandard rated policies and some may only qualify for the Cash-Out option in the 15th Policy anniversary. 2) The riders are offered at no additional premium. However, the accelerated payment will be less than the requested death benefit because it will be reduced by an actuarial discount and an administrative fee of up to $500. The amount of the actuarial discount is primarily dependent on American National’s determination of the insured’s life expectancy at the time of election. A request for an accelerated benefit may only be advisable if the qualifying event results in a significant reduction in the insured’s life expectancy. A shorter life expectancy will result in a larger benefit offer. Outstanding policy loans will reduce the amount of the benefit payment. SGUL18; GCOR15; ABR14-TM; ABR14-CH; ABR14-CT ND & SD Form Series ABR22-CT, ABR22-CH and ABR22-TM (Forms may vary by state). The contract and riders may not be available in all states. See Policy for details and limitations. American National Insurance Company, Galveston, Texas.