Retirement readiness

Between taxes and penalties on early withdrawals, many clients will only be getting 65 cents for every dollar they take out.

Advisors must contend not only with the emotional and psychological issues facing their clients. They must also navigate complex family relationships, while juggling a slew of financial challenges that don't always have easy fixes.

More than half of retirees said they were not at all interested in longevity insurance, according to a recent survey. Surprised? Take a look at some of the other results.

If retirement is abstract to clients, ask specific questions to make it more real to them, such as: “Where will you be living? What does your house look like? What are you doing?"

Once advisors have this conversation with clients, it can turn into a powerful referral source, says Rob Kron, head of investment and retirement education at BlackRock.

Each pre-retiree couple is in a unique circumstance, and needs to account for their health and longevity, as well as their willingness and ability to work.

Not tapping tax-deferred retirement accounts until the age of 70 1/2 can be a wrong move, as required minimum distributions can be big enough to push retirees to a higher tax bracket.

These plans once merely supplemented health insurance. Now they are a vital part of a broader retirement strategy.

Rates are likely to remain low, which will have a negative effect on retirees and older workers who are adjusting their portfolios in preparation for retirement.

Clients should start shoring up their savings by chipping in as much as they reasonably can to their employer’s retirement plan, especially if it comes with a matching contribution.