Gallery: Where Will Your Clients Live? Planning for Housing in RetirementJan 22, 2014
When it comes retirement planning, many advisors are caught up in finding sources of income for their clients. But advisors may be ignoring a crucial aspect of retirement planning: housing, according to a recent Legg Mason survey.
The survey of about 506 advisors, conducted by WealthManagement.com for Legg Mason, found that only 14 percent of advisors have helped their clients develop specific plans to address their future long-term housing needs, such as downsizing, moving to a retirement community of preparing for advanced care. At the same time, nearly half of advisors have personally considered their own housing options for retirement.
“Every decision around housing has significant economic implications,” said Kathleen Pritchard, managing director, head of advisor business development at Legg Mason. “If someone wants to age in place, chances are they will have to substantially modify their home to make it age-safe. Moving to a retirement community, assisted living community, or nursing home can deplete savings if the appropriate planning has not been done. Unfortunately, many people are forced to deal with the issue when it’s too late – when a fall or ailment takes the choice out of their hands.”
To help advisors work with their clients on housing needs, Legg Mason has collaborated with The Center for Innovative Care in Aging at the Johns Hopkins University School of Nursing to create a new advisor education program.
The Legg Mason survey offers an interesting picture of housing trends and aging clients. Here are a few highlights of the findings.