As retirement draws closer, money stops being just about growth and starts being about security, timing, and choices. The paycheck you’ve relied on for decades is about to change, and with it comes a different kind of complexity: how to stretch savings across an unknown number of years, how to balance lifestyle with caution, and how to prepare for taxes, healthcare costs, or even supporting the next generation.
You could piece this puzzle together on your own. After all, there’s no shortage of articles, calculators, or investment tips online. But theory rarely matches real life. Markets move in ways you can’t control, laws change without warning, and personal circumstances (a health issue, a business sale, an inheritance) can rewrite your financial story overnight.
That’s why so many professionals at this stage begin to wonder: Am I missing something? Do I need outside guidance? It’s a fair question, and it goes beyond just “getting advice.” It’s about whether you have the structure, perspective, and discipline needed to safeguard what you’ve built.
This article explores the benefits of hiring a financial advisor and why you may need one.
Below are some of the top reasons why you may need to hire a financial advisor:
1. You’re facing multiple, overlapping financial goals (not just one)
When you’re in the 55 to 65 age bracket, your finances are rarely about just one thing. Maybe you want to:
- Retire in 5 to 10 years, but also help with college costs for a grandchild or support an aging parent.
- Pay down existing debt while also sheltering from taxes.
- Maintain a lifestyle while also preparing for healthcare and unexpected costs.
A financial advisor helps you map all these goals into one coherent plan, analyze trade-offs (for instance, “Do I contribute more to retirement or pay off debt first?”), and ensure that your stretch goals are realistic. They help you save enough by factoring in taxes, inflation, and your long-term retirement goals. Without that, you risk having goals pulling in different directions.
2. The tax, estate, insurance, and healthcare rules are changing (fast)
Rules governing Social Security, Medicare, tax brackets, required minimum distributions (RMDs), and estate tax thresholds are not static. Also, healthcare costs tend to balloon in retirement, and the risk of long-term care looms larger.
This is where an advisor’s expertise earns its keep. They can help structure how you withdraw from tax-advantaged accounts, protect your estate, and identify which insurance gaps to close. If you don’t understand or keep up with those changes, a misstep could cost far more than what you’d pay an advisor.
3. Retirement is one of life’s big transitions; the risk of running out of money (longevity risk) is real
One of the biggest financial risks as you plan for retirement is that you’ll live longer than expected (and with higher costs), and that your money won’t stretch. You need to plan withdrawal strategies, sequence withdrawals (which accounts to use when), buffer for market downturns, inflation, and health shocks.
An advisor helps you model that, build in those buffers, adjust your projections, and set up sustainable spending. That’s part of why you would need a financial advisor — to reduce the chance of running out of money or being forced into poor decisions late in life.
4. You don’t have the time, or the interest, to manage the details
Even if you’re financially literate, managing everything on your own is time-consuming. You need to track market trends and tax law changes, rebalance portfolios, and review insurance and estate documents, all while facing a high risk of overlooking something important.
A financial advisor handles those details for you. That lets you focus on what you do best (your work, making time for family, your interests) without losing sight of the big picture. There’s real value in having someone consistently monitor things on your behalf, rebalance, and respond to life events. This relates to what financial advisors do daily; many of their tasks are invisible but crucial.
5. Emotional discipline and behavioral coaching (especially when markets swing)
Markets drop. News surprises. A significant investment can look tempting or scary. Emotions can push you into bad decisions (selling at lows, buying risky stuff unnecessarily). Especially for someone near retirement, when the stakes are higher (you have less runway to recover from losses).
One major benefit of hiring a financial advisor is that they act as a behavioral coach: helping you stay the course, avoid panic reactions, and make consistent decisions. They can remind you of your long-term plan when short-term noise threatens to derail it. That sort of discipline can make a significant difference in net outcome.
6. You’re handling a complex financial situation
Complexity can come from many sources:
- You’ve got multiple income sources: pension, 401(k), IRAs, and some consulting or side businesses.
- You’ve inherited assets, or expect one.
- You own or co-own real estate or have business assets.
- You have multiple potential beneficiaries; estate planning is nontrivial.
- You have concerns about taxes (for example, AMT, state taxes, capital gains, tax efficiency).
When these sorts of complexities arise, it’s not just about picking investments. You’ll want someone who understands the nuances, can see hidden risks or opportunities.
7. You want to optimize and adjust as life evolves
Life doesn’t pause. Death, illness, divorce, children or grandchildren, changes in healthcare, moving states, selling a business, all these force reassessment of financial plans. If you retire earlier than expected, or want to work part-time, or take on new responsibilities, things change.
An advisor keeps you on top of this. They review, adjust, pivot. They do periodic check-ins, reassess your assumptions (inflation, rate of return, longevity), and help you stay agile. Without that, you might stick with a plan that no longer fits your life, either taking too much risk or being overly conservative.
8. To increase confidence, reduce regrets, and preserve peace of mind
You might think: “I can manage on my own,” and many people do. But as you near retirement, the cost of mistakes is high. Confidence matters. Not worrying whether you made the right trade, or whether you are optimized, whether you missed some tax break, or whether you’ll be okay if markets drop sharply.
Having someone you trust, who is qualified, helps reduce anxiety. One recent survey showed people who work with financial advisors report materially higher retirement confidence than those who don’t.
So, do you really need a financial advisor?
Choosing whether to work with a financial advisor isn’t a small decision. It often determines whether you enter retirement second-guessing every move or with the confidence that your plan can withstand both the expected and the unexpected.
If you’re evaluating advisors, focus on five essentials:
- Credentials and fiduciary duty: Are they CFP® certified and legally bound to put your interests first?
- Transparent fees: Do you know exactly what you’ll pay and why?
- Relevant experience: Do they typically serve clients like you, nearing or entering retirement?
- Communication style: Will they check in regularly and adjust when market conditions or life circumstances change?
- Scenario planning: Can they prepare you for worst-case outcomes such as market downturns or rising healthcare costs?
Of course, if your finances are simple and you’re disciplined, a full-time advisor may not be essential. But even then, a periodic check-in can protect you from costly oversights as laws, markets, and personal circumstances change.
As you approach retirement, take a moment to list the top three things that worry you most about your financial future. Then speak with advisors who specialize in those concerns. The cost of exploring your options is small. The cost of getting it wrong is far higher. So, avoid making the wrong call and explore our financial advisor directory to find seasoned professionals who can guide your next financial move.