Recent statistics from the US Census Bureau show that nearly 75% of Americans reaching age 50 have less than $25,000 in net worth. This is a remarkable and very sad statistic. It means that unless they do something drastic and very fast, their prospects for a decent retirement look pretty bleak.

From the point of view of our society, this means that, in the future, we will have a retirement community of more than 2 classes: the haves and the have-nots, with the latter being the majority. The government will have to find a way to better support the health problems of this group, as well as the financial burdens they will impose on the economy.

Certified financial planners have a very difficult job. While your job is difficult enough to show your clients how to save and prepare for their desired retirement lifestyle, it becomes nearly impossible when the client has such paltry resources to work with. Good, sincere planners will work with their clients to help them understand the dire situation they find themselves in and suggest some rather drastic measures to change the situation.

To have more in their retirement savings fund, people will likely have to downsize their homes, replace expensive financed cars with paid off older models, and otherwise find ways to get rid of home debt. The credit card. If the average American could simply save the amount they currently spend on credit card interest, their retirement future would be so much brighter! The difficulty is in getting from here to there.

When you’re used to dealing with wealthier people about how to best allocate and invest your vast resources, it’s a difficult transition in mindset for many planners to switch gears. Many have chosen to ‘abandon the poor’ and focus only on the wealthiest clients. In my opinion, planners have a moral obligation to help everyone achieve their own retirement goal, and most CFPs I know are doing just that. This is very challenging, but they have an opportunity to make a big difference in the future of their customers.

As they scrimp and save for retirement, your clients may not immediately appreciate the benefits of your advice. The famous radio host, Dave Ramsey, advised people to eat ‘beans and rice’ until their finances are in order. (He also suggests that if this diet gets too boring, you can switch to ‘rice and beans’!

Planners, rest assured that your wise counsel for those with few resources is most noble and desperately needed. You will probably also be suggesting alternative sources of income for your clients. In this area, think ‘outside the box’ and consider showing them some of the many opportunities that exist on the Internet today.

We have been able to show many retirees how to earn an extra thousand or two thousand dollars a month to supplement their retirement. There’s no reason why a 50-year-old (or their spouse) can’t also have a small amount of extra money for their retirement savings. The level of activity on the Internet is constantly increasing and there is plenty for everyone! They just have to take the time and look around. Most of them have a wealth of experience and perhaps some special skills or talents that they have learned. Be sure to advise them NOT to buy into one of the many “get rich quick” deals on the net. The idea is not to spend more money, but to earn more. It certainly can be done!