The New World of Retirement
Help your clients understand the new world of retirement.
As your clients move along the path toward retirement in their 40s and 50s, they have growing responsibilities in their career and in their personal life. Your clients may be mid-career, but time is still a great asset. Help them understand how to use the next decades to build retirement security. BlackRock's Retirement Center offers tailored content, relevant action items and tools to guide your clients on their path to retirement.
What Are the Key Conversations?
- Save for multiple goals: Help your clients to balance retirement planning with other significant financial commitments, such as a child's college education or care of an elderly parent. Because of the complexity of many competing financial demands, talk to your clients about the coordination of their investment strategies across accounts.
- Take advantage of catch-up contributions. When your clients turn 50, they have the opportunity to make additional contributions into their IRA or qualified plan. In this new world of retirement with people living longer, every bit of savings will make a difference in the long run.
Why Catch-up Contributions Matter
If you max out your 401(k) and experience a 7% annual return, you save just over $800,000 between ages 50 and 70. If you take full advantage of catch-up contributions, you save over $1 million in that same time persiod.
- Understand retirement savings options. As the responsibility of saving for retirement shifts more squarely to investors, it's important that you talk with your clients about all the savings vehicles available and the tax benefits for each option—be it 401(k), IRA or different types of qualified retirement plans. Let BlackRock help you start key conversations with clients surrounding retirement accounts and tax diversification.
- It may be time to consolidate. If your clients have had a lot of jobs, chances are they have many 401(k) accounts with different employers. In situations like this, it's easy to lose track of beneficiaries and money. Talk to your clients about consolidating accounts into a rollover IRA for more control over assets. Let BlackRock help you understand the options.
- The cost of retirement. Helping clients start now to think about how much they will need in retirement requires a close look at anticipated expenses and sources of monthly income. Take the time to help your clients bucket anticipated expenses and determine the required retirement income needed. Let BlackRock help you start these conversations with our Retirement Expense Worksheet.
- Think about Social Security. While no one knows if Social Security will be there for your clients in their 40s and 50s, it's important that they understand some Social Security benefits they may be eligible for now. When one person in a family is eligible for Social Security retirement or disability benefits, other family members, including younger spouses and children, may also qualify for benefits. Let BlackRock help you educate your clients about available Social Security options.
How to Use Resources
What does retirement mean to your clients in their 40s and 50s? It's never too early to start defining that retirement. Direct your clients to BlackRock's Define Your Retirement tool to help them visualize what their retirement might look like. It's an easy way to get the retirement conversation started—through an innovative web-based tool that allows clients to envision how they might want to live in retirement.
Take Advantage of BlackRock's Market Strategies & Products
Target date funds can make retirement saving easier.
* This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this presentation are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance does not guarantee future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.
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