Academy of Financial Services
To our knowledge, this is the first empirical study in financial planning that explores social isolation and loneliness in retirement and how financial advisors can help. Using data from the Health and Retirement Study (HRS), we found that retirees begin to experience increasing levels of loneliness during the middle of their retirement extending into late retirement. Undoubtedly, this impacts their life quality of life leading to mental and physical illnesses and thus higher health care costs which negatively affects portfolio sustainability and financial goals. As the financial planning industry evolves, financial planners should be more engaged in their client's life. The results presented in this study provides a practical implication for advisors who work with retirees.
Author(s): Yuanshan (Jimmy) Cheng, Tao Guo, Philip Gibson