The numbers tell a story that should make every wealth manager pay attention.
Eighty percent of baby boomers may be unprepared for retirement, according to McKinsey research. Yet 62% of adults age 50 and older have never consulted a professional to help plan for their golden years, CNBC reports.
This disconnect represents the biggest opportunity in wealth management today.
Pre-retirees control massive assets—McKinsey estimates the “financially near the line” segment alone owns $11.5 trillion. These are people with enough money to retire but not enough margin for error. They need help, but most haven’t found it yet.
The question is: how do you reach them?
The Shift from Accumulation to Decumulation
For decades, the retirement industry focused on one thing: helping people save money. Auto-enrollment, target-date funds, and employer matching are all designed to increase the amount of money in accounts.
That worked. US retirement account balances across defined contribution accounts and IRAs more than doubled over the past decade to $23 trillion, according to McKinsey.
But now these savers face a different challenge. They need to convert those savings into reliable income that lasts through retirement. This shift from accumulation to decumulation is where most people get stuck.
Here’s why: saving money is simple. Spend less, save more, let compound interest work. But creating retirement income requires navigating tax implications, withdrawal strategies, Social Security timing, healthcare costs, and market volatility—all while ensuring the money lasts 20 to 30 years.
Most pre-retirees feel overwhelmed by this complexity. And that’s your opportunity.
What Pre-Retirees Actually Need
1. Multiple Income Stream Strategy
Pre-retirees need to understand that retirement income should come from several sources, not just their 401(k). Social Security, pensions, annuities, part-time work, and investment accounts all play different roles.
The challenge is coordination. When to claim Social Security? How much to withdraw from which accounts? How to minimize taxes across all sources?
This isn’t something most people can figure out on their own. They need professional guidance to create a strategy that maximizes their income while minimizing their taxes.
2. Tax-Efficient Withdrawal Strategies
Here’s something most pre-retirees don’t understand: the order in which you withdraw money from different accounts can significantly impact how long your savings last.
Traditional 401(k)s and IRAs require taxes on withdrawals. Roth accounts don’t. Taxable investment accounts have different rules for capital gains. The sequence of withdrawals can save or cost tens of thousands of dollars over a retirement.
McKinsey research shows that “decumulation robos” that make tax-smart withdrawals can create substantial value for retirees. But most people need human guidance to understand these strategies and feel confident implementing them.
3. Healthcare and Long-Term Care Planning
Healthcare costs are the number one financial concern for retirees, cited by 25% of respondents in McKinsey surveys. The challenge is that these costs are both significant and unpredictable.
According to the National Council on Aging, about 60 percent of older adults would not be able to afford more than two years of consecutive long-term care. This uncertainty makes financial planning difficult.
Pre-retirees need help understanding their options for healthcare coverage, long-term care insurance, and setting aside money for medical expenses. They also need to understand how healthcare decisions affect their overall financial plan.
4. Inflation Protection
Inflation is the second most cited financial concern among pre-retirees, according to McKinsey research. This makes sense—fixed incomes lose purchasing power over time, and retirement can last 20 to 30 years.
Pre-retirees need investment strategies that can grow with or ahead of inflation. They also need to understand how to adjust their withdrawal strategies when inflation spikes, as it has recently.
5. Peace of Mind
Perhaps most importantly, pre-retirees need confidence in their plan. McKinsey found that pre-retirees with an advisor or financial plan are five to ten times more likely to feel ready for retirement.
This isn’t just about the numbers. It’s about having someone who understands their situation, has seen similar challenges before, and can guide them through the complexities of retirement planning.
How to Connect with Pre-Retirees
1. Focus on Education, Not Selling
Pre-retirees are skeptical of financial professionals because they’ve been sold to their entire careers. The key to connecting with them is leading with education.
Create content that explains complex retirement concepts in simple terms. Host seminars about Social Security strategies. Write articles about tax-efficient withdrawal methods. Show your expertise before asking for their business.
Kapitalwise helps advisors reach pre-retirees through educational content and tools that demonstrate value before any sales conversation begins. When prospects see you as an educator first, they’re more likely to trust you with their financial future.
2. Address Their Specific Concerns
Generic financial advice doesn’t resonate with pre-retirees. They have specific concerns about healthcare costs, inflation, market volatility, and outliving their money.
Create messaging that directly addresses these concerns. Show how you help clients navigate market downturns. Explain your approach to healthcare planning. Demonstrate how you help people create inflation-protected income streams.
The more specific you can be about solving their actual problems, the more likely they are to see you as the right advisor for their situation.
3. Use Technology to Scale Your Reach
You can’t personally meet with every pre-retiree who needs help. But you can use technology to reach more people and provide value at scale.
Digital planning tools, automated educational sequences, and online resources can help you connect with pre-retirees before they’re ready for a face-to-face meeting. This allows you to build trust over time and be top-of-mind when they’re ready to work with an advisor.
Kapitalwise’s platform helps advisors systematically reach and engage pre-retirees through educational content and planning tools. This creates a consistent pipeline of prospects who are already educated about the value of professional guidance.
4. Make the First Conversation Low-Pressure
Many pre-retirees avoid financial advisors because they fear high-pressure sales tactics. The key is making the first conversation about them, not about you.
Offer free retirement check-ups or planning sessions with no obligation. Focus on understanding their situation and providing immediate value. Show them what good planning looks like without pushing them to become clients.
When people feel like you’re genuinely trying to help rather than sell, they’re much more likely to work with you.
5. Build Referral Systems
Your existing clients are your best source of pre-retiree prospects. Many of your current clients have friends, family members, and colleagues approaching retirement who need help.
But most clients don’t refer unless you make it easy and give them a reason to do so. Create simple referral processes and regularly remind clients about the value you provide to people in similar situations.
Consider hosting client appreciation events where clients can bring guests who might benefit from your services. This creates natural opportunities for introductions without making your clients feel like they’re selling for you.
The Timing Has Never Been Better
Several factors make this the perfect time to focus on pre-retirees:
The retirement surge is happening now. A record number of Americans are reaching retirement age this year, and this surge will continue through 2027, according to Pew research.
The pandemic created urgency. McKinsey estimates 2.4 million “excess” retirements happened during the pandemic. Many people who thought they had more time to plan suddenly found themselves needing immediate help.
Rising costs are creating anxiety. Inflation has outpaced wage growth, and healthcare costs continue to rise. Pre-retirees are more aware than ever that they need professional help to navigate these challenges.
Technology makes reaching them easier. Digital marketing, educational content, and online planning tools allow you to connect with pre-retirees at scale and provide value before they’re ready for a traditional advisor relationship.
Building Your Pre-Retiree Practice
Here’s how to get started:
Audit your current messaging. Does your marketing speak directly to pre-retiree concerns, or is it generic financial advice? Rewrite your content to address their specific challenges.
Create educational resources. Develop guides, webinars, and tools that help pre-retirees understand retirement planning concepts. Use these to demonstrate your expertise and build trust.
Implement systematic outreach. Don’t rely on referrals alone. Use technology to consistently reach new pre-retirees in your market. Kapitalwise can help you build systems that generate steady prospects without constant manual effort.
Train your team. Make sure everyone understands the unique needs and concerns of pre-retirees. Their sales process should be different from how you approach younger clients or existing retirees.
Track your results. Measure how many pre-retirees you’re reaching, how many become clients, and what messaging resonates best. Use this data to continuously improve your approach.
The Bottom Line
Pre-retirees represent the biggest opportunity in wealth management today. They control trillions in assets, they need professional help, but most haven’t found it yet.
The advisors who succeed with this market will be those who understand the shift from accumulation to decumulation, who can explain complex concepts simply, and who use technology to reach prospects at scale.
This isn’t about having the best investment returns or the lowest fees. It’s about providing confidence and clarity to people facing one of the most important financial transitions of their lives.
The opportunity is there. But you need the right partner to help you capture it.
You need a system that consistently delivers qualified pre-retiree leads. You need tools to manage and nurture those prospects through your sales process. And you need a platform that positions you as the education-first advisor these prospects are looking for.
That’s where Kapitalwise comes in.
Our lead generation and CRM platform is specifically designed for wealth managers targeting pre-retirees. We deliver 12-15 high-quality, pre-qualified prospects monthly while providing the tools you need to convert them into clients.
Ready to capture your share of the $11.5 trillion pre-retiree market?
Schedule a demo with Kapitalwise →
See how our platform can transform your practice from hoping for referrals to systematically acquiring the pre-retiree clients who need your expertise most.
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