Connect * Empower * Impact

2019 AFCPE® Research and Training Symposium

AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Thursday, November 15th, 2018
Category: Retirement
Maximizing Retirement Satisfaction: Guiding Clients in Making Optimal Resource Decisions
The trend over the last couple of decades has been a shift away from defined benefit or pension plans to defined contribution plans, putting more of the onus for retirement funding onto the individual. We also know that many people are not adequately saving for retirement. If you are a financial professional - from financial educator, to counselor, to coach, to planner - we all have an obligation to have a retirement conversation with our clients/learners. Typically, a financial planner focuses on retirement saving by monetizing life goals and determining saving goals in conjunction with their clients. There are several retirement calculators available that are based on an income replacement percentage. People have ideas about a certain target "number", but maybe haven't given much thought to what those dollars are buying them in retirement and what type of spending will maximize their retirement satisfaction. As financial professionals - planners, coaches, counselors, and educators - we need to expand our conversation with clients and learners to include the transformation of financial capital into life satisfaction. How can we help our clients and learners to understand the best use of their resources to illicit maximum satisfaction in their retirement? This study examines, through the lens of human connection and household production theories, retirees' resource spending to find the activities that are correlated with the highest levels of life satisfaction. Financial professionals can use these results to guide retirement conversations with their clients and learners to promote resource decisions that are consistent with maximizing life satisfaction in retirement.
Implications for Practitioners
To provide value-added service for our clients and learners, financial professionals must not only have the tools to help clients and learners repair, maintain, and build wealth to support their retirement goals, but must also help their clients/learners understand and incorporate the transition from more goods-intensive commodities to more time-intensive, experiential-type commodities (especially those that focus on human connection). Results from this study suggest that inputs of leisure spending, health investments, and high-quality spousal and friend relationships are key in maximizing retirement life satisfaction.
*CFP Pre-Approved Session - 1 CEU