Financial Advisors Report 40% of Their Clients Were Forced to Retire, Edward Jones Survey Finds

Inflation and Financial Assistance to Loved Ones Among the Greatest Financial Shocks for Retirees

ST. LOUIS, July 18, 2023 – Financial advisors across the industry report 40% of their retiree clients were forced into retirement, according to a new survey by financial services firm Edward Jones. Almost all financial advisors surveyed (97%) agree that retirement involves more surprises and challenges than their clients expected while an equal number (98%) agree that preparation, flexibility and willingness to adapt are key to success in retirement.

Financial advisors also report cost of living increases (29%), financial assistance for family or friends (26%), and the declining value of investments (26%) are the most impactful financial shocks for retirees.

“Retirement is often full of unforeseen challenges, whether it be an involuntary termination or health challenge, the timing of their retirement can be an unexpected challenge itself," said Jennifer Schoonmaker-Dasch, an Edward Jones financial advisor in Lexington, NC. "At Edward Jones, we prepare clients to navigate the unexpected with a holistic retirement strategy that not only takes into consideration their finances, but also their health, family, and purpose.”

Budgeting and Debt Management are Key to Helping Retirees Prepare for the Unexpected

To navigate challenges associated with retirement, financial advisors can serve as an advocate and accountability partner for their clients – helping to keep them on track with a financial strategy and a budget to reduce expenses and pay down debt.

The majority of financial advisors also recommend obtaining supplemental health insurance (52%), securing long-term care insurance (48%), and adopting a more frugal lifestyle (48%) for financial stability.

In preparing for retirement financially, clients struggle the most with developing an income withdrawal strategy (35%) and determining the optimal timing for claiming Social Security benefits (35%).

"As financial advisors, we’re uniquely positioned to help clients achieve their long-term financial goals by understanding how varying influences, like their health or family relationships, factor into their overall picture. By serving our clients more completely through deep personal relationships and a comprehensive approach and advice, we help them prepare to retire at the time that’s right for them and navigate it successfully," said Schoonmaker-Dasch.

Holistic Retirement Planning Includes Discussing the Importance of Employment in Retirement

Financial advisors almost universally agree (99%) that clients want to work with a financial advisor who prepares them holistically for retirement. Part of that holistic approach may include plans for clients to work in retirement. Ninety-four percent of financial advisors say they have discussed or would like to discuss deciding how or if their clients should return to work after retiring. Staying mentally active (99%), earning health insurance benefits (99%), and feeling a sense of purpose (97%) are the most important benefits of working in retirement, according to the financial advisors surveyed.

The most common counsel they offer clients regarding work in retirement is to embrace an open-minded approach (36%), followed closely by networking for new opportunities (31%), and being willing to work for someone younger than they (30%).

“More and more, we are having conversations with our clients about whether working in retirement might be right for them," added Schoonmaker-Dasch “Working in retirement may look different for individuals than it did in the peak of their careers, but the right employment opportunity can help provide financial stability and give retirees a sense of purpose.”

Methodology

This survey was conducted by global data intelligence company Morning Consult among a national sample of 200 financial advisors from May 4 – 10, 2023.

About Edward Jones

Edward Jones is a leading financial services firm in the U.S. and through its affiliate in Canada. The firm's nearly 19,000 financial advisors serve more than 8 million clients with a total of $1.7 trillion in client assets under care as of March 2023. Edward Jones' purpose is to partner for positive impact to improve the lives of its clients and colleagues, and together, better our communities and society. Through the dedication of the firm's approximately 52,000 associates and our branch presence in 68% of U.S. counties, the firm is committed to helping more people achieve financially what is most important to them. The Edward Jones website is at www.edwardjones.com, and its recruiting website is www.careers.edwardjones.com. Member SIPC.

Media Contact

Regina DeLuca-Imral
[email protected]