Firms across all channels in the financial services industry are placing greater emphasis on providing their advisors with comprehensive support for helping clients with retirement planning — for the wealth-accumulation stage and through the post-retirement period.

“It’s a very contemporary issue now as the baby-boomer generation is, in fact, reaching the retirement years,” says Kevin Regan, executive vice president of financial services with Winnipeg-based Investors Group Inc.

In addition to deamographics, there also appears to be a higher degree of uncertainty about retirement. With all the recent turmoil in equities markets and the gradual erosion of confidence in the safety of both private and public pensions, clients are looking to their advisors for guidance to see them to — and through — their golden years.

In response, financial services firms are putting additional resources into support for helping clients accumulate assets for retirement and for helping clients plan for post-retirement income. This includes hiring in-house retirement planning experts, increasing training opportunities for advisors, introducing planning software, launching products specifically suited to retirement planning and providing marketing support.

Of course, most firms provide retirement planning as part of their traditional financial planning services. However, the recent focus on retirement planning throughout the industry is an indication of how this aspect of financial planning has become not only a priority for clients but an opportunity for firms to cement relationships with those clients.

Branch-based advisors with the Big Six banks and two credit unions appear to be happiest with how their firms are addressing their clients’ retirement-planning needs. Among the four advisory channels, the deposit-taking institutions received the highest overall ratings — an average of 8.3 in “support for helping clients accumulate assets for retirement” and an average of 8.2 in “support for helping clients plan for post-retirement income.”

Advisors with Toronto-based Royal Bank of Canada, which received the highest ratings in both these categories in the 2010 Report Card on Banks and Credit Unions, say they like the various tools and calculators available for determining client needs and tracking performance — as well as the expertise available in-house. Says an RBC advisor in Ontario: “We have a support team that is phenomenal whenever you have a question.”

RBC has developed a program entitled Your Future by Design that allows advisors to work out an appropriate retirement-planning strategy for clients. “It’s a very roll-up-your-sleeves, hands-on approach,” says Michael Walker, vice president and head of branch investments with RBC. “We can help clients with those decisions around retirement transition, such as how to turn assets into a paycheque in retirement.”

At Toronto-based Bank of Mon-treal, advisors have access to expert advice through a call centre and to training on how to use software tools properly. BMO also has launched a specialized retirement market group that produces support material and builds training programs. This year, the group put together a multi-city tour to train and educate BMO advisors. Finally, the bank also has introduced more income-producing products geared toward clients entering retirement or already in that stage of their lives.
@page_break@BMO advisors say they appreciate their firm’s efforts to bolster retirement-planning capabilities. Says a BMO advisor in British Columbia: “They do a very good job in terms of helping customers define and attain goals by providing the software and the products necessary.”

Investors Group also has introduced new retirement-planning support materials, launched new products geared toward generating income for retirement and developed targeted training for advi-sors in order to meet what the firm believes is a growing demand. Says Regan: “Retirement planning has become a real focus for us in the past 18 months.”

Investors Group has developed a retirement readiness quiz, accessible on the firm’s consumer website, that allows clients and potential clients to gauge how well prepared financially they are for retirement. Adds Regan: “It gets clients thinking about it, and that encourages them to have a dialogue with their [advisors].”

Investors Group advisors gave their firm a score of 8.7 for support for retirement planning, and an 8.9 for post-retirement planning. Says an Investors Group advisor in Alberta: “That side of the house is really strong. We have specialists I can reach out and touch quickly. The support is just great.”

Mississauga, Ont.-based PFSL Investments Canada Ltd. was also rated strongly in the two retirement-planning categories, receiving a 9.5 for support for retirement planning and a 9.2 for post-retirement planning from its advisors. Says a PFSL advisor in Ontario: “We have access to a variety of tools. The support platform is phenomenal.”

Advisors with Toronto-based Richardson GMP Ltd. gave their firm a 9.3 rating in both categories — the highest marks among the brokerage firms. The firm has developed an in-house wealth and estate planning group to help advisors serve their clients, most of whom are high net-worth individuals. “Advisors can leverage this team through a dedicated resource line or have the experts meet one-on-one with clients,” says Jason Darling, the firm’s director of investments and advice.

Richardson GMP advisors also approve of their firm’s planning software and other support materials. Says a Richardson GMP advisor in Alberta: “The firm provides good tools and research.”

Winnipeg-based Wellington West Capital Inc. has recently launched an asset-management department in response to requests from its top advisors. As a result of that initiative, the firm now offers products — growth and income portfolios — specifically designed for clients approaching retirement. “The firm has really enhanced [its retirement-planning capabilities] over the past couple of years,” says a Wellington West advisor in Atlantic Canada. “They’ve brought in different product lines and different people to manage the products.”

Calgary-based managing general agency PPI Solutions Inc. (formerly known as Financial Management Group of Cos. Inc.) received the highest scores among the insurance firms in 2010, with a 9.1 rating in both retirement categories.

The firm has recently put more resources toward the asset-management side of its business, including creating marketing materials and tools addressing clients’ retirement-planning needs. The firm also provides training seminars on marketing, products and strategies, and provides its advisors with expert support. Says a PPI Solutions advisor in Manitoba: “Any questions I ask of them are met with a quick response. And if they can’t assist, they will get the answer or get you the resources.”

IE