For agents who've had lots of experience with life insurance leads, they've likely found that individuals who tend to purchase life insurance are generally in their older years and either past or nearing retirement. But that may soon change, as a new report suggests that Americans tend to achieve greater financial security by staying at their jobs a few years after they may have originally planned to retire.
According to The National Retirement Risk Index, an analysis performed by financial services firm Prudential, approximately half of individuals today will not have the financial backing they need to comfortably retire by age 65. That's up from approximately 30 percent in 1989 when a similar poll was conducted. However, researchers have found that by retiring at 70 rather than 65, the percentage of those prepared to retire increases to 86 percent.
James McInnes, chief operating officer for Prudential Retirement, noted that this finding may come as a surprise to those who may have thought that working longer wouldn't make much of a difference.
"While many Americans despair of ever being able to retire, the reality is that with a few extra years of work and a delay in taking Social Security, they can increase their chances of being able to have a more financially secure retirement," said McInnes. "The question individuals have to ask is whether this is something they want to do or will be in a position to do, and companies have to ask what this would mean from a human resources management perspective."
The report, "Planning for Retirement: How Much Longer Do We Need to Work," touches on various ways in which individuals can increase their retirement savings, such as by steadily increasing the amount of money that's devoted to retirement living as they near 65, putting plans in place for the possibility of working beyond that age and insuring retirement income.
The report also lays out what insurance professionals and financial advisors should do, such as formulating a strategy that's specific to each customer regarding the best age to retire and demonstrating through examples how working a bit longer can lead to greater financial security.
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