In 2006, members of America’s massive baby boomer generation started turning 60. As a result, 77 million baby boomers are retiring by the boatload each year, dropping out of the working world like flies — flies with colossal amounts of assets under their control. As a matter of fact, the baby boomer generation holds an unprecedented $2 trillion in annual spending dollars, according to a study by the MetLife Mature Market Institute. With such awesome financial power, baby boomers are prime targets for insurance agents and financial advisors.
But not every financial professional will earn a slice of the baby boomer pie, according to Charles S. Yanikoski, author of “Nine Keys to Winning Baby Boomer Assets at Retirement,” (Honor Publications, 2007). Yanikoski says that financial professionals have to get their heads in the game to win over the baby boomer market. “This may seem harsh, but the financial industry is still thinking small, and so is achieving small,” he says. In his handy, easy-to-read guidebook, Yanikoski teaches financial professionals how to think big and win big when it comes to the retiring baby boomer market. Here are some of the keys to success he offers.
Play offense
Yanikoski explains that financial professionals need to go on the offense when dealing with the baby boomer market. “When people retire, every element of their finances is open to review, and every asset they have is up for grabs. But if you are just playing defense, you will never see that money.”
Part of playing offensively, he says, is simply being there when important financial events take place in a baby boomer’s life and critical financial decisions must be made. You have to become a trusted source of advice and provide reliable products and services to your baby boomer clients. In other words, you need to be proactive instead of reactive with these retired and soon-to-retire customers.
Think opposites
“Serving retirees isn’t just different,” says Yanikoski. “It’s the opposite of what you’re used to.” He points out that unlike the younger clients who are many years away from retirement, retirees are highly motivated about planning financially for what’s left of their future. As a matter of fact, they are often stressed, confused, and downright overwhelmed when it comes to their finances.
“This means that marketing to baby boomer retirees is going to be very different from marketing to their younger selves,” Yanikoski says.
Don’t KISS
In this industry, we’ve all heard and probably used the acronym KISS (keep it simple, stupid!). However, Yanikoski says that this rule of thumb does not apply to baby boomer retirees: “It is one thing to use a simple process when the details don’t matter much, for example when planning retirement savings for younger people. But using a simple process when the need is complex, and doing it just because we prefer simplicity, is foolish.”
Because retiring baby boomers have complex questions and issues, they require complex answers and solutions. Yanikoski says that advisors must take a holistic approach when it comes to planning retirees’ finances. This means you have to look at the whole picture of a client’s finances, not just a few puzzle pieces.
“Since your success in this market will be determined by your ability to be present and effective at this complex point in life, you will need powerful analytical tools that can handle all of the complexities and their interrelations simultaneously and produce a comprehensive plan.” He says if you don’t acquire and develop these kinds of tools, baby boomer clients will know you are short-changing them and seek financial guidance elsewhere.
As the gigantic baby boomer market continues to retire in increasing numbers, it is critical for financial professionals to change the way they treat these clients. If you hope to get your hands on a heaping helping of the baby boomer pie, you’ll have to start thinking big. As Yanikoski predicts, “Success will go to those who are willing to reinvent how we serve retirees and near-retirees.”
Amy Bell is a freelance writer and frequent contributor to the Agent’s Sales Journal. Visit her Web site at www.writepunch.com or email her at amy@writepunch.com.