Why traditional retirement planning isn’t going to cut it

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Traditional retirement planning isn’t going to cut it. Tell clients to do this instead
Today's seniors will be better off planning for an "encore life" than preparing for a "traditional retirement," writes an expert on MarketWatch. That's because people are living longer, making the concept obsolete, writes the expert. "An encore life is something that begins during, and is an extension of, the third quarter of life, thanks in large part to the longevity bonus. It should be a time of new found freedom and flexibility."

Clients spend 80% of their retirement on these 5 things. Here's how to help
Research shows that healthcare, housing, food, clothing and transportation represent 80% of the expenses of an average retiree household, according to this article on Motley Fool. To reduce spending on health care, seniors are advised to get health insurance coverage for their actual medical needs, opt for generics and consult their doctor for cost-saving measures. They may also consider downsizing or relocating to a less expensive location to reduce their housing costs. Thrift stores, end-of-season sales and renting one-time outfits can also help them save on clothing.

Your client’s long life could be the death of their retirement savings
Clients are advised to estimate their life expectancy to better prepare for retirement, according to The Washington Post. “When you live longer, your money needs to last longer,” writes an expert. “But a big problem is many people still hold fast to a retirement model based on a much shorter life span. They don’t consider that their retirement could last three decades or more, and so they don’t plan how to pay for that.”

7 mistakes guaranteed to ruin a client’s retirement
Clients are very likely to ruin their retirement if they spend beyond their means just to keep up with their peers, according to this article on Aol. Their retirement prospects won't look bright if they are not saving aggressively, setting aside money for the wrong reasons, and socking away money in wrong accounts. Clients should also save to fund big-ticket purchases, maintain a good credit score and invest wisely to secure their golden years.

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