Planning for retirement is becoming more critical than ever. There are fewer and fewer companies offering traditional pension plans, and many of those that do are experiencing difficulty fulfilling their commitments. On top of the reduced pension benefits, the majority of younger workers do not expect Social Security to provide any meaningful assistance. Because of these concerns, many of today's workers are alarmed about retirement planning.
So you might be asking yourself how this impacts you in your attempts to offer other benefits and services. There are five reasons why you need to be concerned.
First, your clients are concerned, and you need to empathize with them in order to better meet their overall insurance and planning needs. If they feel you are out of touch with what is keeping them up at night, they might not consider you an expert in any area. On the other hand, when you demonstrate that you understand their issues and concerns, your credibility should increase.
Second, often times they might not be purchasing other benefits because they are trying to save for retirement. As we all know, prospects only have so much money to spend on benefits, and this includes retirement. If no one has helped them figure how much they should be saving, they may be overdoing retirement savings to the detriment of some other need. They need to be able to sit down and work with a retirement planning specialist to better understand their long-term savings needs. If you had a business relationship or partner that could assist them in their retirement planning, their minds could be eased about their retirement, freeing up potential funds for other necessary benefits.
Third, while retirement planning does not help benefit brokers pay their bills directly, it can help solidify their position with clients. The employer and employee will appreciate any help received in this area. If you can form an alliance with a financial planner with well-defined roles, both can win and more importantly, the clients win. Also, since the clients are happy, they are less likely to change brokers.
Fourth, many times it will be easier to get into a company when a retirement plan is part of the equation. Many smaller companies do not have retirement plans because they cannot afford them, but they would love to help their employees by introducing them to a professional. If the broker and the financial planner work as a team, more doors will be opened for both.
Fifth, if all concerns are addressed at the time of sale of voluntary benefits, the clients will be less likely to change their minds. Oftentimes clients purchase a benefit only to later decide that they need to save more for retirement. As a result, their benefits are allowed to lapse. However, even after discontinuing their benefits, few actually follow through on additional savings. The key is to get them into a retirement plan that helps them remain committed to all of their needs.
From the May 2007 issue of Benefits Selling Magazine • Subscribe!
