Sales & Marketing | 12.03.24
Why Words Matter to Financial Advisors
by: MassMutual Strategic Distributors
Supporting Conversations About Retirement with Insights From MIT Agelabs and MassMutual Strategic Distributors
This article is sponsored by MassMutual Strategic Distributors.
We at MassMutual Strategic Distributors (MMSD) think a lot about how people imagine retirement. People are living longer, societal norms are changing and ideas around how to live later in life are evolving. That’s why MMSD has chosen to collaborate with MIT Age Lab to better understand how people describe life after work. We’re sharing our findings in a campaign we’re calling Words Matter — introduced at the Annual BISA Conference in March. The first survey results are now available.
Longevity Drives the Need for Better Conversations
Before getting into the results, it’s important to establish a common understanding about longevity and changing norms. Significant advances in science, technology, medicine and public health have all contributed to a longer average lifespan, meaning people are likely to spend more time in the “life after work” phase. The US Centers for Disease Control estimates that a 65-year-old man can expect to live an additional 17.5 years beyond retirement, and a 65-year-old woman can expect to live an additional 20.2 years.
Furthermore, the idea of retirement is also shifting. It is no longer seen as a singular moment; rather, it’s a process that can vary in timing and duration. It’s becoming more common for people to retire and then re-enter the workforce in some capacity. Of course, there are those who can’t imagine ever retiring!
Research: How Do Different Clients View Life After Work?
Underlying the research is our need to understand people’s goals and expectations for the years that fall into life after work. MIT AgeLab conducted a survey with a nationally drawn sample of 1,303 participants, representing five generations. Survey participants were asked to list five words that come to mind when they think about the end of their work life.
The average American has an estimated vocabulary of about 30,000 words. The results of this study showed that people tend to converge around a very small number of words to describe this time in their lives. The top 10 most frequently used words accounted for about a third of all responses; 28 words accounted for almost 50%.
The most frequently used words were generally positive, indicating that people have optimistic views. The top 10 words can be grouped into three categories: positive realizations: (relax, happy, fun); relationships (family) and money[1].
Age and gender show distinctive differences in participants’ word choices. For example, younger participants were more likely to use words related to work and the workforce, while older ones focused more on words associated with personal relationships and social connections[1]. The vocabulary of retirement changes with age, reflecting current concerns and wishes.
Turn Insights Into Better Client Conversations.
Financial professionals can use these findings to tailor their communication and planning strategies when speaking with people representing various age groups and genders. We’ve built a tool to help financial professionals prepare for these discussions.
The vocabulary of retirement is not an endpoint, but a starting point for conversations. Financial professionals can use the words from the study as a basis for discussions with clients about their priorities and aspirations for later life[1]. By understanding the vocabulary people use to describe life after a career, financial professionals can better support their clients in planning for a fulfilling and enjoyable retirement[1]. Clients can use these words with their family members to have more meaningful conversations about future priorities.
To learn more insights and get support for your client conversations about retirement, visit our website or call our knowledgeable sales team at (877) 338-2603. For more tips to grow your practice, follow us on LinkedIn.
References
[1] Whitepaper - Life After Career: THE VOCABULARY OF RETIREMENT