Meeting the needs of new retirees

RETIREMENT >>   Meeting the needs of new retirees






Meeting the needs of new retirees

http://www.mckinseyquarterly.com

retiring baby boomers

retiring baby boomers

Click images to enlarge.

New McKinsey research shows that many affluent US consumers don't trust the skills of even top-rated financial-services firms in offering retirement advice.

As financial-services firms compete to serve retiring baby boomers, they must overcome a significant handicap: many consumers don't trust their skills. By building teams of specialists with complementary product and functional expertise, these firms can inspire confidence and attract more business.

New McKinsey research shows that many affluent US consumers don't trust the skills of even top-rated financial-services firms in offering retirement advice. As a result, almost half of the consumers we surveyed preferred to plan their own retirement strategies, though the growing complexity of retirement risks makes many people—including affluent ones—extremely anxious.

But such firms can win the confidence—and the business—of retired and retiring consumers. Specialized financial advisers who understand the industries, corporate benefits packages, and specific financial situations of retirees may succeed in calming their fears. Teams of these specialists can provide more effective service than individual advisers, whose expertise is necessarily limited. Firms can create teams to serve many different industries, client segments, and geographies: for instance, in Europe, where well-publicized barriers such as high commissions have dampened enthusiasm for private pension products, teams with deep knowledge of specific local markets may well overcome the consumers' concerns and win the business of current and potential clients.

The data in the exhibit above are available to McKinsey Quarterly readers for the first time in this month's Chart Focus. For additional research on how to meet the changing financial needs of retiring baby boomers, read "Taking the risk out of retirement."



blog comments powered by Disqus