Conversation Obligation

Speaking of communicating with clients, the research also shows that the "conversation with the client," which refers to the series of interactions the financial planner has when his or her client is fully engaged in the retirement income and planning discussion, is a major step in the planning process.

Eighty-six percent of planners surveyed selected "Financial Planning" (comprehensive review of assets, income stream, objectives, expenses, etc.) as the primary way in which they engage their clients in the retirement planning discussion. This process involves consolidating the variety of assets accumulated over the years into a more manageable format and provides a good overview of a client's financial position.

"The effectiveness of these financial planning discussions can be seen in their impact on the level of client investment," the report reads. In fact, the percent of financial planners reporting that they manage or direct more than 75% of client assets more than doubles, from 32% to 71%, as a result of these retirement planning conversations.

"The simple fact is that millions of Americans rely on advisors for retirement planning, and that number will likely increase as the Baby Boomers begin to shift their focus from accumulation to distribution in retirement," said Fidelity Senior VP Gary Gallagher in a statement released with the report. "This study reveals that planners see the wave of retirement income planning business coming and they are looking for the resources to help them meet the needs of their clients and establish a growing and profitable practice focused on retirement income planning."

The study found a high percentage of planners are considering a selective expansion of their professional networks. Accountants and other tax professionals, along with lawyers, are the most likely partnership candidates, with nearly 50% of financial planners either already in a partnership or very likely to partner with these professionals over the next 12 months. Also, when asked what planners view as their clients' greatest risks, health care expenses (83%), outliving savings (75%), and withdrawing savings too quickly (74%) rank highest.