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Retirement Success Factors

Investments, Personal Finance

Posted by Peter Wouters

Sep 7, 2016 9:47:08 AM

Directeur, Planification fiscale et successorale et planification de la retraite, Gestion de patrimoine
Placements Empire Vie

What defines a successful retirement? How do you measure it?

Dr. Richard Johnson is a nationally recognized spokesperson in the field of retirement and adult planning. He has done a lot of work in the retirement field. His 20 years of research have found that there are 15 key factors that will determine how successful investors/clients will be during retirement. Here’s the eye-opener. Only one of the factors is financial.

Retirement Success Factors

15 key factors determine how successful investors will be during retirement

1 is financial

Source: Dr. Richard Johnson, Ph.D., Retirement Success Profile

The other 14 factors are influenced by investors/clients’ views on their health, their current level of happiness, their position in the workplace and their expectations of the future, including lifestyle.

Let’s compare that research with traditional approaches to retirement planning, which focus on one factor only, financial. Retirement is an evolving concept with different stages and phases, with different income and cash flow requirements. The focus should be on what people want to do, specifically during the next phase in their lives, particularly during the next 10 years. Investors approaching retirement need to figure out what they want to do, when they want to do it, how long they want to do it and whether those things are just "nice to dos" or "want to dos." Only then can advisors help them determine the amount and pattern of income they will need to make it all happen.

The biggest issue for people entering retirement is not their financial plan but goal clarification. Specific, detailed goals are easier to price out and evaluate. It then becomes easier to look at alternatives like planning a holiday, buying a home or paying down a debt.

Retirement discovery is as much about life discovery as it is financial discovery. Aging investors will need someone who can help them see the big picture as they put together a plan. Yes, it takes time. It is an investment into a long-term relationship between clients and advisors where both parties are comfortable that advisors truly understand clients and know their situation. Armed with this deep understanding, advisors and clients can make better informed decisions about a course of action that will be both attainable and sustainable.