Many Americans aged 51 to 69 have a unique outlook on life, particularly when it comes to financial management and insurance, according to a new white paper from Chubb. While sharing several of the same interests and passions as younger cohorts, pre-retirees are more focused on legacy building than on wealth accumulation.
“The Pre-Retirees: Changing Minds, Changing Needs”white paper explores the implications this changing mindset may have for wealth advisors and insurance agents. It also outlines the property and personal liability issues impacting pre-retirees, including risks associated with home ownership, travel and passionate pursuits.
“Pre-retirees hold about $8 trillion in assets but, unlike younger generations, the majority are not focused on accumulating more wealth or property—rather, the emphasis is on what they have accomplished and the legacy they want to leave,” explains Alanna Johnson, Senior Vice President, Premier Practice Leader, Chubb Personal Risk Services. “This has implications for how pre-retirees and their advisors approach risk management. Wealth advisors and insurance agents can best serve this generation by understanding the client’s changing risk profile and designing a holistic risk management program that fits their lifestyle.”
According to the white paper, some of the most pressing legacy building-related risks pre-retirees and their advisors should be aware of include:
- Serving on non-profit boards that might not offer sufficient D&O liability coverage in the event of a lawsuit
- Emerging property risks as a result of relocation as more pre-retirees move or purchase property to be closer to their adult children and grandchildren
- Unforeseen gaps in protection when pursuing sophisticated wealth transfer strategies, such as the establishment of a trust or LLC
- Having sufficient medical evacuation coverage and travel insurance in the event of an accident or injury abroad.