Investors are changing their lifestyles and some are delaying retirement as a result of the financial crisis, according to study by the Financial Planning Association.
The annual survey of financial advisers’ perceptions of the retirement income distribution market, which was conducted by Diversified Services Group, polled financial planners with clients who are in or near retirement and found that 40% of clients had to change their lifestyles this year, most likely as a result of the economic downturn.
These lifestyle changes include 18% of clients who delayed their retirement and 6% of clients who had previously retired and returned to work because of the economic climate over the past year. Rising healthcare costs concerned many retirees who worried about outliving their savings and not being able to cover healthcare costs.
The recession, coupled with a large number of Baby Boomers retiring, increased the demand for retirement income planning, with almost half of the planners’ surveyed saying they gained four to 10 new retirement income clients in the last year.
Sixty-three percent of respondents provided retirement income planning advice, services and products to more than half of their client base in the last year.
“The demand for retirement income planning services is one way consumers are communicating their financial needs,” said Marv Tuttle, executive director and chief executive officer of the Financial Planning Association.