How Financial Advisers Can Build Retiring Clients' Confidence
Financial professionals can help families and individuals plan for a fulfilling future in a shifting retirement space.


Retirement is no longer as simple as turning 65 and collecting a pension. Today’s retirement landscape is more complex than ever, leaving many Americans uncertain about how to make their retirement dreams a reality.
Financial professionals play an important role in helping to simplify this complexity, guiding clients toward smart decisions that help ensure lifelong financial confidence. From shifting savings responsibilities to the looming fear of outliving their money, here are some ways you can step in and help make a measurable difference in your clients’ lives.
The retirement landscape has changed
Retirement planning is now a personal responsibility game. The shift from employer-provided defined benefit pensions to self-managed defined contribution plans (e.g., 401(k)s) places the burdens of investment, risk management and income generation squarely on the individual.

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The challenge. Most clients lack the financial knowledge or tools to manage this task effectively. Nearly half of Americans (48%) don’t know how much they’ll need to save for retirement, according to Northwestern Mutual’s Planning & Progress Study 2023.
Your opportunity. Financial advisers can help close this knowledge gap by simplifying the process, setting clear goals and simplifying complex decisions.
Bridging the savings gap
The numbers tell a stark story about client preparedness. Northwestern Mutual’s study shows that while Americans believe they need $1.27 million on average to retire comfortably, the reality of what many have saved falls far short.
Why it matters. Without intervention, this savings gap can lead to delayed retirements, reduced quality of life and the erosion of client confidence.
How you can help. Start with realistic goals. Teach clients about the power of compounding growth and the importance of consistent contributions, even during market downturns, and break down their big savings number into achievable annual and monthly contributions.
Managing the fear of outliving savings
Longer life expectancies — age 84.2 for men and 86.8 for women who reach 65 in 2024, according to the Social Security Administration — mean clients must plan for 20-plus years of expenses after they stop working. The fear of running out of money is real, with 51% of Americans worried they’ll outlive their savings.
To help clients manage this risk, consider these strategies:
- Income longevity. Design withdrawal strategies that balance consistent income with portfolio sustainability
- Social Security optimization. Help clients decide when to claim benefits for optimum impact
- Health care preparedness. Encourage planning for rising medical and long-term care costs, so they’re not caught off guard
Diversified income is key
Relying on a single income source in retirement can leave clients vulnerable — especially given the uncertainty surrounding Social Security. The program’s trust fund may be depleted by 2033, potentially reducing benefits to 79% of current levels.
Encourage a diversified approach to supplement Social Security, such as:
- 401(k)s and IRAs for tax-efficient growth
- Personal savings and investments for flexibility
- Annuities to offer guaranteed income streams
- Low-risk investments for preserving capital
Understanding income sources is important. Currently, Social Security and retirement accounts each provide 28% of the average retiree’s income, with savings contributing 22%, according to Northwestern Mutual’s study. Advisers can help ensure all these pieces fit together in a long-term plan.
Financial planning builds confidence
Disciplined financial planning fosters independence and confidence. The numbers support it: 80% of retirees who work with financial advisers feel confident in their financial future, compared to just 58% of those without professional guidance, according to an Alliance for Lifetime Income report.
- Planning pays off. Clients with advisers are more likely to retire earlier (average age 63 vs 67 for undisciplined planners) and confidently weather economic ups and downs.
- Your role. Position yourself as an essential partner, helping provide both the structure and flexibility needed to adapt to life’s inevitable surprises.
Focus on low-risk, guaranteed income solutions
Most clients crave stability in retirement. On average, they want nearly 77% of their savings invested in low-risk options. Additionally, the Alliance for Lifetime Income report notes, 97% see value in having guaranteed lifetime income beyond Social Security.
To meet this demand, consider discussing options like:
- Protected annuities to help safeguard against market volatility
- Portfolio strategies aligned with clients’ risk tolerance
- Income replacement tools that prioritize both preservation and growth
Address fears beyond finances
Clients’ biggest retirement concerns aren’t just about money. The Northwestern Mutual study noted they also fear declining health (44%), losing a sense of purpose (27%) and becoming isolated (16%). These fears underscore the need for a comprehensive approach that looks beyond the numbers.
Some ways you can help:
- Offer education on health care and long-term care planning
- Encourage clients to explore hobbies, travel, volunteer work or part-time retirement jobs to maintain a sense of purpose
- Build rapport with family members where appropriate to provide clients with emotional and social support networks
What’s next for you?
The new retirement reality makes your role more important than ever. By incorporating these insights into your practice, you can provide the guidance and experience your clients need to thrive.
- Use the above data to start meaningful retirement conversations with clients, focusing on bridging the gap between what they have and what they need
- Prioritize long-term plans that aim to withstand economic ups and downs, including diversification strategies
- Help clients feel prepared for both the financial and emotional challenges that come with retirement
Retirement planning should inspire confidence and security. With your guidance, your clients can transform uncertainty into a future full of possibility. That kind of success begins today — with you.
2/25-4190751 Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.
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Jake Klima has dedicated 18 years to the financial services industry, focusing on coaching elite financial advisers. In his leadership role at Advisors Excel, a market-leading financial services wholesaler, Jake partners with top-performing advisers to help them enhance their practices and build thriving businesses. Leading a coaching team of over 100 members, Jake emphasizes transforming advisory firms into scalable businesses that offer time freedom.
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