- Many people have no idea how much they need for the kind of retirement they want.
- Figuring out current savings, retirement income, and future costs can be difficult for many people.
- An easy-to-understand number score can help clients see how they’re doing on their journey to retirement.
Do your clients know how much money they’ll have to live on in retirement? If they don’t, they have plenty of company. Many people have no idea of how much they need to be saving for retirement — or even how to calculate it.
In a survey by the Transamerica Center for Retirement Studies®, almost half of workers (46%) who provided an estimate of their retirement savings needs indicated they guessed at their estimates. Twenty-two percent estimated this goal based on their current living expenses.1
How ready are they?
Knowing how much they’ll need to save to create the retirement they want is a mystery for many clients. It’s probably what led them to your office to start with. Fortunately, there’s a new online tool that can help you start the conversation with new or even current clients. It’s called RISE — Retirement Income Security Evaluation — and it was developed by the Alliance for Lifetime Income, a nonprofit organization.
A RISE ScoreTM can provide your clients with a free, estimated measure of their income security to help them assess how well their current retirement income portfolio will cover basic living expenses and healthcare costs in retirement. Scores range between 0 and 850 — the higher the score, the better.
While using the tool only takes a few minutes, there are a few things your clients will need to gather up before they get started. They’ll want their latest tax returns, an estimate of their total retirement savings, research their estimated pension amount (if applicable), estimate their monthly living and medical expenses, and, if they have it, their estimated Social Security amount. If they don’t know or can’t find some of those numbers, it’s OK. The tool provides average estimates as a guide. You can also fill it out together and help them with their numbers.
If you or your clients have concerns about sharing their personal information with the website, just remember the information they enter is anonymous. No identifiable information is required to get their score — not even their email.
Obviously, the more accurate the numbers your client can put in, the more confidence you both can have in their personalized score. The tool also provides the flexibility to play the “what if” game — offering the chance to retake the quiz and look at different scenarios.
Open the door to a bigger discussion
Having your new — or even your current — clients figure out their RISE Score is a great starting point to a much larger discussion about their financial strengths and weaknesses. Make it their “homework,” or walk through it together in your office. From there, you can help them dial in a more accurate financial snapshot of how close they are to their retirement savings goals.
Find out where your clients stand on their retirement journey today.
Things to Consider:
- A client’s RISE Score is only an estimate of their retirement readiness. Use it to help start the conversation and dial in a more accurate financial picture.
- Clients may not be able to answer a few of their questions on their own — you may want to walk them through it.
- If a client has a lower than desired retirement readiness score, discuss potential solutions to help them close that gap before they retire.
1. What is “Retirement”? Three Generations Prepare for Older Age, 19th Annual Transamerica Retirement Survey of Workers, nonprofit Transamerica Center for Retirement Studies®, April 2019, pp. 21
Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker-dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as insurance, securities, tax, legal, or financial advice or guidance. Please consult your personal independent advisors for answers to your specific questions.
Neither Transamerica nor its agents or representatives may provide medical, tax, investment, or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.
Transamerica is not affiliated with Alliance for Lifetime Income. Transamerica does not control, guarantee, endorse, or approve the information, products, services, or any content maintained by third parties.