If you’re a financial advisor with retired clients, you’re likely aware that retirees today are living longer,
healthier lives than those in past generations. But did you know that retirees
are spending a lot of time in front of
the television or that most retirees are
not relocating to lower-tax, warmer-weather states?
Those are just two of the surprising
findings of a new study from robo-advi-
sor United Income, called “The State
of Retirees: How Longer Lives Have
The report, based on data from multi-
ple government and private data sources
rather than a single online or phone sur-
vey, found that retirees on average spend
about 4. 5 hours, or 30% of their wak-
ing hours, watching TV including news
shows on network and cable channels.
That can not only increase health
problems but also make clients increasingly risk averse, says Matt Fellowes,
CEO of United Income and co-author of
the report. “Clients are getting too cautious,” which, in turn, makes it harder for
advisors being able to “deliver meaningful wealth returns,” explained Fellowes, a
former innovation officer at Morningstar.
He recommends that advisors work
to counteract those fears, “getting active
in the lives of their clients,” suggesting
ways for clients to get more involved in
their communities, in creating personal
networks and in their hobbies. “A lot of
older advisors are as much a life coach
as a wealth manager. They should be
aware of the increasing amount of time
clients are spending each day in front of
the TV, which is blasting increasingly
sensational news,” Fellowes said.
Retirees also are more physically
active, but the time they spend watching TV is three times as much as the
time they spend on physical activities.
For every 10 minutes added onto the life
of a retiring 60-year-old, one minute is
spent watching TV and just 20 seconds
is spent on exercise, outdoor activities
or sports, according to the study.
As the health and wealth of retirees have
increased, more are choosing to stay in
or near their homes and neighborhoods
rather than moving to a lower-tax state
or cheaper, more rural areas within their
states. “Retirees are increasingly staying put and living in more expensive
suburbs near urban areas instead of less
expensive rural areas,” the report finds.
Nearly half of retirees are now living in the suburbs of cities, and their
numbers have increased by almost 40%
over the past 40 years. The share of
Retirees Moving Less, In More Ways Than One
Two retiree surprises found in a United Income study; Schwab reveals
misconceptions about target date funds, and annuities a big hit with single
By Bernice Napach, Emily Zulz and Allison Bell