For the very wealthy, the planning might be to minimise tax and to facilitate a transfer of wealth down the generations in the easiest way possible. At the other end of the scale, a large number of people might not have sufficient savings, and for them the only option could be maximising the level and certainty of their income. (annuity purchase?).
That leaves the rest of the population, who have financial assets and for whom a retirement plan can have real value in clarifying needs as opposed to aspirations. Three key factors are likely to be income, tax and the need to pass money on - all within a documented risk profile.
Retirement can be voluntary or it can be enforced, it can be total, partial or phased, but most importantly it can be long! Increasing longevity can mean retirement being perhaps twenty or even thirty years (in some cases even more), and for many a good retirement plan must be able to maintain flexibility and be regularly reviewed.
Retirement planning is not just about pensions either. It is about the efficient use of all financial assets, added to a monitoring of changing circumstances, all within an acceptable level of risk. This could include residential property - indeed the mantra “my house is my pension” is commonly heard when discussing retirement plans.
There are tools around to assist with risk profiling and cash flow modelling, but I think it is important that these are used to inform a decision and planning process, as opposed to imposing a plan.
In the run-up to retirement (the accumulation phase) it might be possible to change things if the plan is off track - perhaps work longer, save more etc - but in the decumulation phase this might not be possible, so getting it right is vital.
So, know your client and his or her needs and wishes, understand their attitude to risk and their capacity for loss, then review the plan on a regular basis, adjusting it if required.
One final point. Advisers need to realise that they may have advised many people on retirement, but for each new client it is probably the first time they have had to consider some of the important lifestyle issues that retirement involves.