Planning for retirement typically starts with a simple step – using a
retirement calculator
to input some numbers, which only takes a few minutes. However, as your assets and financial situation become more complex, retirement planning can become more intricate.
What is a retirement financial planner?
A retirement financial planner is a
financial advisor
who specializes in assisting clients with retirement planning. These professionals help individuals create retirement savings and investment strategies before retirement. As retirement approaches, the focus may shift to developing a withdrawal plan while considering factors such as
Social Security
, Medicare, and
required minimum distributions
.
Should you hire a financial advisor? Take the quiz.
Signs you should consider hiring a retirement financial planner
If any of the situations below apply to you, engaging a retirement financial planner could be beneficial:
-
You have finances spread across various accounts or have complex financial holdings.
Accumulating multiple accounts, assets, and financial obligations can make retirement planning more challenging. Diverse income sources,
equity compensation
,
alternative investments
, and
inheritances
can add complexity to planning for the present and future. -
You’re uncertain if you’re saving enough.
Do you have clarity on your retirement savings? A retirement planner can help simulate different scenarios and pinpoint any specific gaps based on your situation. -
You’ve recently experienced or are about to undergo significant life changes.
Life events like marriage, divorce, inheritance, job transitions, or property sales can impact your finances substantially, making it challenging to predict the effect on your retirement. -
You haven’t engaged in any estate planning.
As part of retirement planning, you may need to determine how your assets will be distributed after your passing and what
estate planning
entails for your beneficiaries.
Reasons you may not need a retirement financial planner
❌ Your finances are very simple and straightforward.
❌ You have predictable expenses and a clear investing strategy.
❌ You know your retirement goals and monitor your progress regularly.
❌ You prefer a do-it-yourself approach with robo-advisors, self-directed investing, or online tools like calculators.
How much does a retirement financial planner cost?
The cost of engaging a retirement financial planner varies based on the advisor’s fee structure, the level of service required, and the complexity of your finances. While budget is a consideration when selecting a financial planner, it’s essential to assess the services and expertise offered by each to determine the best fit for your needs.
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Assets under management (AUM)
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0.25% to 0.50% annually for a robo-advisor; about 1% for a financial advisor.
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Flat annual fee (retainer)
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Typically $2,500 to $9,200.
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Typically $3,000, but the cost will vary by service.
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3% to 6% of investment transaction amount.
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To compile this information, we reviewed industry studies on average rates among financial advisors in 2024. These studies included:
We also examined fees charged by providers assessed by the BW investing team.
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