As the “Baby Boomer” generation ages, the entire concept of retirement seems to be changing. No longer is retirement seen as a time to spend your days in idleness, but rather a time to take new adventures and explore new opportunities. Since this generation seems to be living longer, healthier lives than the retiring generations that came before them, they are looking for an exciting new phase in life, rather than prematurely giving their lives over to senility.
Of course, the “new beginnings” that baby boomers are looking for often require financial stability in order to be feasible, and the financial outlook for many members of this generation isn’t exactly promising. Many baby boomers have not focused enough on saving for retirement. Whether out of ignorance or fear, the aging population hasn’t planned well for their future, and many now stand in a place of uncertainty.
As retirement looms for baby boomers, they will start to pay more attention to their financial situation. As an insurance expert, that’s where you come in. You should be ready to offer them the products they’ll need in order to feel secure in their lifestyle. Below, we take a quick look at the top three insurance products baby boomers should be interested in.
Annuities can provide retired people with a source of income, which is a top concern among baby boomers. They come in various types, although they can basically be narrowed down into two categories: immediate (pays out immediately) and deferred (payments accumulate over time). There are also fixed annuities (payments of the same amount) and variable annuities (payments based on investment performance).
As you learn the pros and cons of all the options, you’ll be able to advise baby boomers on the best choices for their specific situations, bringing them confidence in their income security for the future.
Investing directly in stocks, bonds, and mutual funds is a good way for baby boomers to diversify their portfolios and add to their retirement income. Depending on the age and personal preference of the client, he/she will likely want a mixture of investment types, in order to offer both long-term growth (stocks) and lower risk growth (bonds, cash).
Conservative investments can be a great way for baby boomers to feel a little more secure about their financial situation. As they feel more financially independent, baby boomers will be able to look forward to retirement, rather than dread it.
Long Term Care Insurance
As health becomes an important issue for aging baby boomers, they may want to consider long term care insurance, which would help cover the costs of an assisted living center or nursing home, should the need to move into one ever arise. While the cost of these plans is often high, it may be worth it for some baby boomers, especially if the likelihood of such care is likely in the future because of medical or family history.
The decision to purchase long term care insurance will depend heavily on these factors, as well as the client’s current financial situation; for some retirees, the high costs of these simply aren’t feasible.
Regardless, this is a product that should at least be introduced to all baby boomers. The cost of this type of care, without insurance, can be extremely high, so if it is even a possibility, it should be seriously considered.
Helping the baby boomer generation feel confident and secure about their impending retirement is very important, and very needed. As we help this generation become informed about their options, we can help make the transition from work life to retirement go a little more smoothly.