Every year since 2008, IMCA has distributed a survey link to its more than 1,000 members, and each year several hundred members respond, which offers a representative sample of the investment adviser, broker-dealer and institutional consultant membership of IMCA.

“Those nearing retirement are feeling the effects of having waited too long to begin saving and of having implemented a financial plan too late, if at all,” the report states. “The financial crisis of 2008 destroyed much of the wealth they accumulated and left little time to recover it … Given these headwinds, it is not a stretch to conclude that, for the next wave of retirees, the transition to retirement will be a bumpy ride.”

In its report, IMCA addresses several specific challenges that future retirees and their advisors will face. Here are five of those challenges:

1. Delayed Planning

Through its research, IMCA finds that most households fail to make retirement planning a priority until the critical wealth accumulation years have passed.

Among the 30- to 39-year-olds, just 12% consider planning for retirement one of their greatest concerns, according to IMCA's findings. This increases to 23% among 40- to 49-year-olds and 25% among 50- to 59-year-olds.

Younger households focus more on immediate needs including household cash flow, current market conditions and current expenses, according to IMCA. Meanwhile, the older the household, the more the focus shifts from short-term needs to long-term planning, including preserving wealth and planning for retirement.

“If young households continue to ignore the importance of wealth accumulation and retirement planning until they reach their 40s, their chances of outliving retirement savings will continue to grow,” the report states.

Retirement savings are probably the most important source of income for future retirees, thanks to the increasing uncertainty of Social Security benefits along with the declining use of defined benefit plans.

“Investors would do well to get serious about saving for retirement early when the number of years to compound growth is still abundant,” the report states.

2. Playing Catch-Up

Almost 70% of 401(k) participants age 60 to 69 believe they are behind in saving for retirement, and the majority of that group felt more than slightly behind, IMCA finds.

Meanwhile only 15% of 40- to 49-year-olds believe they are on track saving for retirement, and just 25% of participants nearing retirement (ages 50 to 59) felt that they were on the right course to meet their financial needs in retirement.

“Reversing this trend will require advisors and clients to attribute much more urgency to long-term retirement planning,” according to IMCA.

3. Lacking Formal Retirement Income Plans

IMCA found, on average, half of households across age range and adviser channel have a formal plan that outlines a specific income stream in retirement. This means that close to half of households do not have a formal retirement income plan, which according to IMCA “illustrates the lack of focus on important long-term goals.”

“Too little, too late is becoming an overarching theme as lack of planning for retirement manifests itself in lack of preparedness for funding living expenses in retirement,” the report states. “Advisers would do well to embark on or revisit their financial plans with their clients, because each new generation demonstrates a greater tendency to focus on short-term needs rather than long-term goals.”

4. A Shrinking Adviser Pool

The average adviser age is 50-years old, and 36% of advisers plan to retire within the next 14 years, IMCA finds. Within the next nine years, nearly one-fifth (17%) of advisors plan to retire.

“A scenario in which large waves of clients begin to retire and their advisers follow suit is not unrealistic, and it adds to the complexity of executing a successful retirement drawdown plan,” the report states.

This could be especially risky for clients who are in the late wealth accumulation or pre-retirement planning stage because they cannot afford to make large investment mistakes.

“Transitioning to a new advisor is a tall order for clients already playing catch-up on retirement saving and planning,” according to IMCA. “It may be prudent for both advisers and clients alike to think about this transition well in advance of its actuality due to the lengthy list of administrative and emotional hurdles that it necessitates.”

5. Delayed Succession Planning Among Advisers

Among the group of advisers planning to retire in the next five years, IMCA finds that 39% have hired or groomed an adviser to eventually lead their practices.

“As advisers retire in larger numbers, the potential for money movement between firms is greater when a successor has not been identified,” according to IMCA.

While finding a buyer may not be a top concern right now for advisers, IMCA finds that 45% of advisors nearing retirement identify transitioning their clients to a successor as a major concern.