The retirement shuffle: How the industry can adapt

Market volatility, recession fears, tariff uncertainties and other macroeconomic factors are driving many investors to rethink their long-term retirement and financial plans.

Investors feel the pressure of rising living costs, taxes and inflation, and are reassessing their savings strategies and overall retirement timelines. Their paramount concern is to ensure their financial security as retirement approaches – but this is no easy task as multiple considerations are at play. According to a Nationwide survey, one in three investors believe it doesn’t make financial sense to retire in their current location, highlighting a growing trend of retirees rethinking where – and how – they’ll spend their later years.

This change has a big impact on distributors, agents and advisors, creating a need for new strategies to keep up with shifting financial planning trends. The life and annuity sector has a chance to offer simpler financial products and digital tools to make things clearer for clients. To do this effectively, however, the industry must transform, update and enhance its processes.

The evolving retirement landscape

To better understand how the L/A sector can help support investors and best position itself for growth, it is critical to consider the current retirement landscape.

With growing concerns around retirement, 79% of Americans agree that there is indeed a “retirement crisis.” Inflation plays a key part, with 73% of Americans stating that “recent inflation has them more concerned about retirement.” According to the recent State of Retirement and Today’s Workforce survey, “64% anticipate issues pertaining to having enough money to afford normal life expenses and the things they will want to do in retirement.”

Considering these worries, it’s understandable that investors are putting all their cards on the table and reconsidering relocation options – with the goal of improving their retirement finances. According to the Nationwide survey, 32% of investors do not believe that their current location is financially sensible for retirement. This is particularly true in the Northeastern and Western U.S. Although there are regional variations, one underlying fact remains – retirement is a significant concern for many Americans currently, and it’s forcing investors to look into various options.

At the same time, ongoing demographic shifts highlighted by the “Peak 65” trend make planning even more urgent. Peak 65 marks the historic surge of Americans reaching retirement age in the U.S., driving major changes in retirement planning and financial strategies.

The Alliance for Lifetime Income reports that an average of 11,400 Americans will turn 65 each day throughout 2025, for an estimated total of 4.2 million people reaching retirement age this year – the highest number ever recorded. This trend is expected to continue well into 2027, increasing the need for carriers, brokerage general agencies, insurance agents and advisors to provide guidance and customized strategies to help retirees – or those approaching retirement – make informed decisions.

Adapting to shifting sands

Distributors who monitor these trends and select to enhance their solutions will be better positioned to support agents and advisors. Agents and advisors who recognize and reflect on this digital transformation can guide investors toward successful retirement incomes, while then proactively looking for new strategies and tools to better serve their clients.

But what exactly must distributors, agents and advisors do differently?

First, there must be a transition toward a more agile and customized approach to wealth management. Every investor’s retirement concerns and challenges will differ, but financial professionals will be expected to understand this and be able to create personalized strategies. This is paramount to helping clients secure their financial futures. Factors that can affect customized needs include investor lifestyle, investment preferences, timelines, and even technology and communication styles.

Distributors must leverage the treasure trove of data to help agents and advisors connect with customers based on their specific needs. They also must expand their product offerings to include advanced software that provides personalized illustrations and comparisons, making it easier for customers to understand their options. In offering a more personalized experience, agents and advisors become more than simply product providers; they become trusted partners in the customer’s financial journey.

Additionally, investors who are looking to relocate to optimize their retirement income will need custom recommendations. Since every region has its own set of rules, advisors must focus on the different regulations in each region and be prepared to navigate these differences with their clients.

Mitigating risk also plays a critical role in retirement planning. To provide stability and protection for clients, brokers must offer structured income solutions. This is where annuities can shine. Annuities provide steady, guaranteed payments that protect against market swings, yet they can be complicated and confusing. Agents and advisors must be ready to compare different annuity options and clearly explain them to customers. To do this effectively, they need both expert knowledge and the right technology to make the process easier and seamless.

Rethinking processes: The need for a digitalization transformation 

Technology plays a key role in helping investors navigate retirement planning. By leveraging advanced data and digital tools, the L/A industry can better understand customer needs and provide personalized support based on their financial goals. Distributors play a crucial role in making products more accessible by equipping agents and advisors with the right tools to fill knowledge gaps and offer better solutions. This allows advisors to create customized retirement strategies and help clients build strong financial plans, which benefits everyone involved.

Digitalization is another key factor in improving financial planning and modeling. AI and automation can enable real-time financial modeling by supporting advisors in assessing inflation, tax changes, and market fluctuations, which enables them to recommend optimal solutions.

AI-powered tools provide a competitive edge by facilitating streamlined workflows, achieving more powerful outcomes, and delivering a seamless experience. Additionally, AI-powered solutions reduce manual efforts and can quickly transform complex processes into real-time insights. In the background, it can serve as the connective tissues between siloed systems to link together the many isolated data houses for a unified and intelligent platform. With insights into an individual's specific retirement challenges, this can help advisors and agents address those issues early on and help them to direct consumers to more personalized solutions.

Digital transformation also makes annuities easier to manage. The traditional process of selling and tracking annuities can be complicated for advisors and agents, especially when dealing with multiple insurance carriers. Digital platforms help simplify this by streamlining applications, improving tracking and giving advisors better visibility into the process. This reduces cycle times, decreases the need to contact carriers for updates, and allows advisors to better serve their clients.

Speed is key to meeting the expectations of today’s investors. Outdated manual systems and paper-based practices slow down the process for advisors, making it harder for them to take advantage of new retirement planning opportunities. Digital solutions are vital to keep up with the growing demand while improving efficiency in retirement and financial planning.

The era of digital transformation meets the era of retirement

It’s no secret that the L/A sector operates in a unique environment, but only those who embrace digital transformation will thrive. Distributors, agents and advisors who stay ahead of these changes can turn shifting demographics and investor needs into successful, long-term growth.

A seamless digital experience is essential for improving interactions, strengthening the experience for clients and advisors, and uncovering new opportunities.

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Joe Yurich is chief revenue officer with iPipeline. Contact him at [email protected].