Next at Noon: Planning Your Financial Planning Seminars for 2020

Plan Sponsors who conduct seminars on financial education or financial planning for their employees may find this time of year tough. While they may have data from surveys and evaluations of employees, they may ask whether they are barking up the right tree. A new survey from  Kiplinger’s Personal Finance and wealth management firm Personal Capital may help. The results from that survey can help Plan Sponsors identify the top worries their employees have about retirement. With those concerns in mind, plan sponsors can find speakers and resources to help address those worries.

The survey asked for the top five worries and the top five hopes. Results from the survey showed that high healthcare costs, lower standard of living, running out of money, not being able to travel, and not getting a regular paycheck topped the list of worries. Of those top hopes, respondents listed time to travel, slower pace of life and relaxation, more flexible schedule, family time, and more recreation.

Survey respondents identified that the biggest threat to their retirement security was about rising healthcare costs. According to Plan Sponsor, a 65-year old couple retiring in 2019 can expect to spend $285,000, or $150,000 for single women and $135,000 for single men in health care and medical expenses throughout retirement. That number has risen significantly. Nerd Wallet reported that The Center for Retirement Research at Boston College estimated in 2010 a typical couple could spend $260,000 in healthcare in retirement.  At a 9% increase in 8 years, some employees may worry that their retirement calculations (or the “magic number” some think they need to reach) won’t be enough.

Another top worry survey respondents noted includes concerns about the impact of a market slump before (61%) or during (62%) retirement. Two major responses of those surveyed were to focus on diversification or go on the offensive and change their allocations. Some respondents, about a third of the total, considered moving to help with any market slump or to help stretch retirement funds. 47% said they are considering working longer and retiring later.

On the flip side of those with concerns, a significant portion (65%) of those surveyed in the Kiplinger’s study said that they feel that they can retire with what they have or will have saved. 73% of those said that they have a financial plan, and 52% are working with a financial professional

Plan Sponsors who want to tackle these issues may want to plan educational seminars with experts or local resources on the following topics:
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• As to the rising cost of health care, sponsors may want to present information from experts on long term care insurance, including the best times to enroll, costs and how to use tax incentives like Health Savings Accounts to help with the start-up costs of long term care.
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• They may also look to discuss preventative care plans employees can start now that could help with health care expenses in the future. These types of seminars could include cooking lessons on heart healthy foods and finding exercise that you enjoy. Sources tell us kale can be delicious if it’s cooked properly. Like employees, we may have to see it to believe it.  
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• Seminars on diversification and rebalancing can also help employees feel confident about being prepared for any market changes.
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• Many financial planners recommend that employees write out a financial plan and review it every year. Seminars on the different kinds of financial plans could be of great use to employees.
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• Some sponsors may want to help employees figure out how to work longer and retire later. This could include seminars from those who retired later successfully in a question and answer format.

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