Non-financial concerns are posing challenges for retirees and their financial planners.
DENVER (May 8, 2025) – The Financial Planning Association® (FPA®), the leading membership organization and trade association for CERTIFIED FINANCIAL PLANNER® professionals, and the Journal of Financial Planning—with support from Finance of America—are pleased to release the 2025 Trends in Retirement Planning survey report, which provides a look at the evolving challenges and priorities shaping retirement.
"Retirement isn't just about number-crunching; it's a significant emotional transition that many clients simply aren't emotionally prepared for," said 2025 FPA President Paul Brahim, CFP®, CEPA®. "As more Americans near retirement, it's imperative that financial planners do more than just manage money. They also need to help clients deal with the emotional aspect of this new life phase."
Based on feedback from 167 financial planners, the report suggests that planners are positive about their clients' financial readiness, but many are concerned about the emotional and lifestyle adjustments of retirement. Rising healthcare costs and the challenge of saving enough for a long retirement are also major risks.
“Seniors currently hold over $14 trillion in home equity. Incorporating some of this equity into a comprehensive retirement plan can help address various concerns retirees and pre-retirees face,” said Steve Resch, vice president of retirement strategies at Finance of America. “These can include the risk of outliving their savings and maintaining their desired lifestyle, the top two concerns identified by financial planners.”
Among the key insights from the report:
Emotional Preparedness Doesn't Compare to Financial Readiness
More than half of planners think their clients are financially prepared for retirement, yet just 11% think they are emotionally prepared. Nearly 60% of planners indicate clients are only moderately prepared emotionally, and 5% believe clients are not at all prepared—indicating a disconnect between how we get ready for retirement. Clients often fear adapting to no longer having work, losing their sense of identity, or being a burden to their loved ones.
Healthcare Costs Are a Major Concern
Healthcare expenses top retirees' worries, surpassing inflation and market fluctuations. As medical costs climb, planners focus more on incorporating healthcare savings options, including Health Savings Accounts (HSAs), long-term care plans, and strategies for optimizing Medicare into retirement plans. Many retirees underestimate their healthcare needs, especially in their later years when health-related issues can quickly deplete savings.
Longevity Risk
Forty-seven percent of planners report that their clients’ biggest fear is running out of money in retirement, and 22% report it's their second biggest fear. Enjoying a good lifestyle is also near the top of the list, with over 55% of planners reporting it's one of their clients' top fears. Other significant fears include the expense of long-term care and being financially reliant on family members.
Individualized Social Security Plans Are a Necessity
Most clients count on Social Security for a large percentage of their income, though planners caution that this may not suffice for a long retirement. While nearly half recommend waiting until age 70 to claim benefits, about 31% suggest claiming benefits at the full retirement age (66-67), and nearly 18% say advice is determined on a case-by-case basis. Health, life expectancy, spousal benefits, and legacy goals are all significant factors in deciding when to claim Social Security.
“This report emphasizes the importance of financial planners dealing with the financial and emotional toll of retirement. Planners need to go beyond the numbers to address the emotional and psychological preparedness clients require in retirement," added Brahim.
The 2025 Trends in Retirement Planning survey report is a valuable resource for financial professionals looking to enhance their approach to retirement planning and better support their clients. The report is now available for download at https://engage.financialplanningassociation.org/trends-in-retirement.
###
About the Financial Planning Association
For 25 years, the Financial Planning Association® (FPA®) has been the leading membership organization and trade association for CERTIFIED FINANCIAL PLANNER® professionals and those engaged in the financial planning process. FPA is the CFP® professional’s partner in planning by helping them realize their vision of professional fulfillment through practice support, learning, advocacy, and networking. Learn more about FPA at financialplanningassociation.org.
About the Journal of Financial Planning
First published in 1979, the mission of the Journal of Financial Planning is to expand the body of knowledge in the financial planning profession. With monthly feature articles, interviews, columns, and peer-reviewed technical contributions, the Journal's content is dynamic, innovative, thought-provoking, and directly beneficial to financial planners in their work. Learn more at www.fpajournal.org.
About Finance of America
Finance of America Reverse LLC dba Finance of America (NMLS 2285) is a modern retirement solutions platform that provides customers with access to an innovative range of retirement offerings centered on the home and is the consumer brand and reverse mortgage operating subsidiary of its parent company, Finance of America Companies Inc. (NYSE: FOA). In addition to the reverse mortgage business, Finance of America Companies Inc. offers capital markets and portfolio management capabilities primarily to optimize the distribution of its originated loans to investors. Finance of America is headquartered in Plano, Texas. For more information, please visit www.financeofamerica.com.