Retirement Planner: Who They are, What They do

What Is a Retirement Planner?

A retirement planner is a financial planner who specializes in helping people to prepare a retirement plan and live out their final years financially secure. As implied in the name, these professionals focus on what a client’s needs will be once they stop working. This means not only ensuring that retirees have a big-enough pension to live comfortably but also addressing other requirements such as estate planning and insurance.

Understanding Retirement Planners

Thinking ahead to retirement is critical, no matter how far away it may seem. People are now living longer and defined-benefit plans are becoming rarer, leaving it up to the individual to contribute adequate funds to survive on what could amount to multiple years without income from a job.

Retirement planners—essentially a subset of the traditional financial planner—are specialized in helping people to enjoy a stress-free life after finishing up in the workplace. Their job is to make sure that clients have the right tools in place to overcome any challenges that may develop during this phase of life.

A decent retirement planner should have a broad arsenal of expertise. Other than giving you an indication of what retirement income you’ll likely have to live on, they are qualified to advise you on matters such as when to take Social Security benefits, whether to opt for an annuity, how to reduce the amount of tax you pay, which type of insurance you may need, and sensible methods to pass down your valuable possessions to loved ones.

Some retirement planners also deal with the nonfinancial aspects, including how to spend one’s time in retirement, where to live, and when to quit work, to name just a few.

As with regular financial planners, the relationship generally starts with an introductory chat. During this meeting, the client will discuss their situation and goals while the retirement planner will provide a breakdown of how much they charge as well as some details about how they operate and address client needs.

If the client is happy to proceed, a more in-depth meeting will be scheduled. Feedback from this conversation will help to shape the retirement planner’s recommendations and form the basis of a bespoke financial plan.

How Much Do Retirement Planners Charge?

Fees vary, depending on the retirement planner and type of service being offered. Some may charge an hourly rate or a flat fee to draw up a retirement income plan and cash flow projection. Alternatively, if you want ongoing advice and someone to manage your plan on a consistent basis, you may be billed an annual fee and/or a percentage of the assets under management.

It’s important to ask all retirement planner candidates for a breakdown of their charges and, if presented with two fee structures, to think carefully about the one that best suits your needs. You should also consider other expenses paid on top of the advice, including for the financial products that you’ve been advised to purchase.

Retirement Planner vs. Financial Planner

Retirement and financial planners are tasked with helping clients meet their current money needs and long-term financial goals. Where they differ is in their focal points. Regular financial planners offer their services to people of all ages. Retirement planners, on the other hand, deal with clients in or near retirement.

This distinction can prove important if you are specifically looking for a professional to get your retirement affairs in order. The needs of older clients and younger clients are very different. Traditional financial planners should be well equipped to steer you on the right path, but retirement planners are specialists in the field and so, in theory, are even better qualified to help you reach the objectives of your later years.

How to Choose a Retirement Planner

Anyone can call themselves a retirement planner, which is why it’s wise to look for credentials and references before hiring one.

The most commonly held professional designation is certified financial planner (CFP). CFPs are bound by rigorous requirements set by the Certified Financial Planner Board of Standards Inc. (CFP Board) and have to pass several exams covering taxes, insurance, estate planning, retirement, and so on before earning this badge of honor.

You could also look for a planner with the retirement income certified professional (RICP) designation. This qualification is issued to CFPs, chartered financial consultants, chartered life underwriters, and other financial experts who complete an accredited training program focused specifically on retirement income planning.

Other notable job titles include chartered financial analyst (CFA), which is awarded to financial professionals who excel in accounting, economics, ethics, money management, and security analysis, and personal financial specialist (PFS), which is issued to certified public accountants (CPAs) with additional expertise in all aspects of financial and wealth management.

When choosing among qualified planners, you’ll want to find one with experience addressing your biggest needs. Retirement is a loose term, and requirements within this age group can vary. You could be seeking an advisor to manage your pension and make sure it lasts—or you may specifically be seeking help with estate planning or insurance.

Once you’ve narrowed down the choice, character becomes a key consideration. Meet with a couple of candidates and opt for the one who impresses you the most, in terms of both expertise and personality. You’re going to entrust this person with your finances, so it’s important to feel in safe hands and that you will be comfortable working with the planner. A person who speaks in plain English rather than industry jargon is also a major plus.

The Bottom Line

A retirement planner can help you address your financial needs after you stop working by reviewing investments, providing budgets, suggesting insurance products, reducing tax liabilities, and managing your estate. Therefore, it’s crucial to choose a financial planner you are compatible with and whose expertise can fill your personal financial needs.