There are a number of other unanticipated situations that can affect an aging client’s ability to plan properly for retirement – sending them into, what Mizgala calls, a “double transition.” These include a divorce after children have fled the nest, the death of a spouse or the interference of offspring or extended family members in the financial planning process.
Mizgala says that, whatever the roadblock, a client’s immediate needs must be re-assessed and concessions made to their retirement plan. She recommends advisors focus initially on the client’s expenses making sure cash outflow match the inflows, rather than looking at the big picture, which may overwhelm the client.
“When somebody is going through those transitions, they may be emotionally incapable of making decisions,” she says. “They need to prioritize what decisions need to be made and that they are going to be ok in the coming months.”
According to the OECD, the overall retirement age for most men and women, globally, will be 67 years old by 2050, representing an increase of 3.5 years on average for men and 4.5 years for women. With reforms leading to lower pensions, more money will inevitably need to be saved for retirement.