(1) 1:246 — Advisor to Boomer Ratio
According to a recent article by FinancialPlanning, the financial industry has only 300,000 advisors currently serving Baby Boomers, who number some 74 million and will reach the age of 65 or older by 2029. That’s one advisor for every 246 Boomers.
(2) $30 Million Inheritance Transfer
It is estimated that Boomers will pass on $30,000,000 in the generational wealth in the following years, yet many advisors are missing their opportunity to connect with the next generation. FinancialPlanning states,
Nine out of 10 financial advisors rate their personal relationship with clients as a crucial element of their business, yet the same percentage only meet with their clients’ heirs once a year or less. Nearly 15% never met their clients’ families other than a spouse, according to the survey.
(3) $177 Billion Increase in Home Equity
In the first quarter of 2018, seniors experienced a $177 billion increase in their home equity–taking the total equity in their homes to $6.82 trillion.
(4) 9.2 Million Age 65+
Between 2020 and 2025, the population of those age 65 and older will increase by $9.2 million people.
(5) 48% Debt Increase
In a recent report, the Federal Reserve Bank of New York showed that per-capita debt among 65-year-olds increased by 48% between 2003 and 2015.
(6) 62% Rely Primarily on Social Security
Sixty-two percent of retired workers receive at least half of their monthly income from Social Security.
(7) $5,200 in Annual Healthcare Costs
Vanguard and Mercer Health & Benefits, released a report:
A typical woman could easily face $200,000 in out-of-pocket medical costs starting at age 65 and extending over her remaining estimated lifespan of 24 years. (The costs are roughly 2 percent less for men, partly because they tend not to live as long.) It estimated that the same hypothetical woman would spend about $5,200 in annual health expenses in the first year, at age 65, rising gradually after that with inflation.
Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®
Latest posts by Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA® (see all)
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