The 3 E’s for the coming retirement income crisis

Mass affluent Boomers could face a retirement income crisis.  They grew up under the pension paradigm.  A belief that you could work for a company for 40 years and then retire with guaranteed income for life.  As that paradigm slowly died, the majority of mass affluent Boomers failed to make adjustments to their retirement income savings plans or their lifestyle behaviors.  As a result, mass affluent Boomers face some significant challenges:

• For many, retirement income savings are underfunded
• They don’t have the pensions of their parents’ generation
• There are threats that the social security system may not be reliable
• Challenges to their ability to continuing working include caring for aging parents, caring for adult children, personal health issues that come with age, and being replaced by younger or even outsourced labor
• They have difficulty lowering their lifestyle expectations

In short, mass affluent Boomers need your help.  As they move toward retirement age, they become more and more aware of it.  They’re ready to listen.  Add to that their sheer numbers and the fact that they have assets that they need help with today.  That creates real reason to connect with and help this group.  In order to do that, you need to follow the 3 E’s:

1. Empathize. The last thing they want is to be judged by someone who is asking to be their financial partner. Let them know that you understand what the retirement income challenge they are facing.  And make sure they know they are not alone.

2. Educate.  Just because they have reached a certain age and amassed some money does not mean they have a clear picture of what to do next.  Deliver help through great information.  Information that doesn’t preach, but instead offers actionable insight that can help them feel more in control.

3. Empower.  Help them understand their retirement income options.  Don’t make it about what they can’t have.  Instead, show them the choices that they get to make.  Maybe it’s simply the option to only work three days a week instead of five.  Having more control over your time can be a very empowering feeling.

Key Takeaways

• The retirement income rules changed for mass affluent Boomers but many did not change their behaviors and could now face a crisis.
• This audience has size, assets, and a willingness to accept help that makes them an attractive target for financial services marketers.
• Connecting with mass affluent Boomers requires following the 3 E’s – Empathize, Educate, & Empower.