What retirement planning services actually cover

Retirement planning services help you understand what money you have, what you will need, and how to make one match the other. A planner or advisor looks at your Social Security, pensions, savings, investments, and home equity — then builds a picture of whether your current path gets you through retirement, and what to adjust if it does not.

These services range from a single conversation with a financial advisor to ongoing management of your accounts. Some planners charge a flat fee for a plan they build once. Others charge a percentage of the money they manage for you. Some work on commission when they sell you products. The type of service you choose depends on how much guidance you want and what you can afford to pay.

A retirement plan is not the same as a retirement account. Your plan is the roadmap — how much you need to spend each year, which accounts to draw from first, when to claim Social Security, whether to buy an annuity. Your accounts are where the actual money sits: IRAs, 401(k)s, brokerage accounts, and so on. A planner helps with the roadmap; you or the planner then execute it in the accounts.

Key Takeaways

  • Retirement planners analyze your Social Security, pensions, savings, and home equity to show whether your current path covers your expenses through retirement.
  • Fee-only planners charge a flat fee or percentage of assets managed, while commission-based planners earn money when they sell you products — each model creates different incentives.
  • A fiduciary advisor is legally required to put your interests ahead of their own; non-fiduciary advisors have no such requirement.
  • You can get a basic plan from a fee-only planner for $1,500 to $5,000, or pay ongoing fees of 0.5% to 1.5% of assets under management.
  • Social Security, Medicare, and tax planning are separate services that many retirement planners do not cover in depth, so ask what is included before you hire.

Fee-only versus commission-based planners

A fee-only planner charges you directly — either a flat fee for a plan, an hourly rate, or a percentage of the assets they manage. You pay them, they work for you, and they have no financial incentive to recommend one product over another. This model is called a fiduciary relationship: the planner is legally required to put your interests first.

A commission-based planner earns money when they sell you an investment product, insurance policy, or annuity. They may not charge you an upfront fee, but they receive a commission from the product provider. This creates a conflict of interest: they earn more if they recommend a higher-commission product, even if a lower-commission option would serve you better. Many commission-based planners are not fiduciaries — they only have to recommend products that are "suitable," not necessarily best for you.

Some planners use a hybrid model: they charge you a fee for planning, then earn commissions if you buy products through them. Ask upfront how your planner is paid and whether they are a fiduciary for all their work or only part of it. The Financial Industry Regulatory Authority (FINRA) BrokerCheck tool lets you search any advisor's registration and disciplinary history.

Where to find a retirement planner

The National Association of Personal Financial Advisors (NAPFA) and the Garrett Planning Network both maintain directories of fee-only planners. The Certified Financial Planner Board of Standards (CFP Board) has a search tool for planners who hold the CFP credential, which requires education, exams, and ethics training. None of these directories may provide quality, but they narrow the field to planners with formal credentials or fee-only business models.

Your bank or brokerage may offer planning services, though these are often commission-based or limited to their own products. Credit unions sometimes offer planning to members at lower cost. If you have a pension from a former employer, the plan administrator may have resources or referrals. Some employers offer retirement planning as an employee benefit, either through group sessions or subsidized one-on-one meetings.

Ask friends, family, or your accountant for referrals. When you contact a planner, ask whether they offer a free initial consultation — many do. Use that call to understand their process, fees, and whether they have experience with situations like yours.

What to expect in a retirement plan

A basic retirement plan usually includes a projection of your income and expenses in retirement, a list of your assets and liabilities, and a recommendation for how much to withdraw each year. The planner may show you a few scenarios: what happens if you retire at 62 versus 67, or if the stock market returns 5% instead of 7%. They may recommend when to claim Social Security, whether to pay off your mortgage, or how to position your investments.

More detailed plans add tax planning (which accounts to draw from in which order to minimize taxes), estate planning (what happens to your money after you die), and long-term care planning (how to pay for nursing home or in-home care if you need it). Some planners also cover Medicare plan selection, but many do not — that is often a separate service with a Medicare specialist.

Ask the planner what is included before you hire them. A plan that covers only investments and withdrawal strategy is less useful than one that also addresses taxes and Social Security timing. If the planner does not cover something you need, ask for a referral to someone who does.

Costs and what they depend on

Fee-only planners typically charge one of three ways. A flat fee for a complete plan ranges from $1,500 to $5,000 or more, depending on complexity. An hourly rate runs $150 to $400 per hour. An assets under management (AUM) fee is a percentage of the money the planner invests for you — usually 0.5% to 1.5% per year, with lower percentages for larger accounts.

Commission-based planners may charge no upfront fee, but the products they sell you carry embedded costs. An annuity might have a 5% to 10% commission built in. A mutual fund might charge 0.5% to 2% annually. These costs are real money that comes out of your returns, even though you do not write a check for them.

The cost that makes sense depends on your situation. If you have $200,000 in retirement savings and want a one-time plan, a flat fee of $2,000 is reasonable. If you have $1 million and want ongoing management, a 0.75% AUM fee ($7,500 per year) might be worth it. If you have $100,000 and limited income, a $2,000 fee is a much larger percentage of your assets, so you might look for a lower-cost option or a planner who works hourly.

Red flags and questions to ask

Avoid planners who promise specific returns, may provide you will not run out of money, or pressure you to buy a product when ready. No one can may provide investment returns, and a planner who claims they can is either inexperienced or dishonest. Similarly, if a planner tells you that you must buy an annuity or insurance product today or you will miss out, that is a sales tactic, not information.

Ask whether the planner has a Certified Financial Planner (CFP) credential, a Chartered Financial Consultant (ChFC) credential, or a Certified Public Accountant (CPA) with tax specialization. These require ongoing education and ethics training. Ask how long they have been in business and whether they have ever been disciplined by a regulator. Check FINRA BrokerCheck or the SEC's Investment Adviser Public Disclosure database.

Ask what happens if you disagree with a recommendation, whether the planner will update your plan annually, and what the process is if you want to stop working with them. A good planner welcomes questions and explains their reasoning. If they seem annoyed by your questions or vague about their process, keep looking.

Planning for Social Security and Medicare separately

Social Security and Medicare are complex enough that many retirement planners do not cover them in depth. Your Social Security claiming decision — whether to take it at 62, wait until 70, or claim as a spouse — can change your lifetime income by hundreds of thousands of dollars. Medicare plan selection at 65 affects your premiums and out-of-pocket costs for years.

Some retirement planners do address these topics, but ask explicitly. If your planner does not, consider a separate consultation with a Social Security specialist or Medicare counselor. The Social Security Administration offers free consultations by phone. Your state health insurance information program (SHIP) offers free Medicare counseling. These services do not sell you anything — they explain your options and let you decide.

A comprehensive retirement plan should at least show how your Social Security timing affects your overall income picture and which Medicare plan fits your health and budget. If your planner skips these, you are missing pieces of the puzzle.

Frequently Asked Questions

Do I need a retirement planner if I have a pension?

A pension covers some of your expenses, but most people need additional income from Social Security, savings, or investments. A planner can show you whether your pension plus Social Security covers your expenses, and if not, how much you need to withdraw from savings each year. Even with a pension, planning is useful.

What is the difference between a financial advisor and a financial planner?

A financial advisor typically manages investments and may sell insurance or other products. A financial planner takes a broader view: they look at your whole financial picture — income, expenses, taxes, insurance, estate planning — and build a long-term strategy. Some people use both. Ask what services each person provides.

Can I do retirement planning myself without hiring a planner?

You can use online tools like the Social Security Administration's retirement estimator or free calculators from Vanguard or Fidelity to get a rough picture. But these tools do not account for taxes, pensions, or complex situations. A professional planner catches things you might miss and saves money through tax-efficient withdrawal strategies.

What should I bring to my first meeting with a retirement planner?

Bring recent statements from all retirement accounts (401(k)s, IRAs, brokerage accounts), any pension statements, your Social Security statement (available at ssa.gov), mortgage or loan documents, and a list of monthly expenses. The more information you have, the more accurate the plan will be.

How often should I update my retirement plan?

Most planners recommend reviewing your plan annually or when something major changes — a large inheritance, a health diagnosis, a market downturn, or a change in your spending. Annual reviews catch drift and let you adjust before small problems become big ones.