PLANADVISER - November/December 2021 - 14

trends
The Role of Pro Bono Services
Advisers working gratis for the underserved help get them on track
THERE is a big appetite among financial advisers to be able
to give back and help, says Matt Iverson-Comelo, executive
director of Advisers Give Back. When people in the
industry think of volunteering, this is often confined to
working at food pantries or building houses. However,
financial planners and advisers have a unique skill set that
is being underutilized and can help people get on a better
financial path.
Iverson-Comelo explains that Advisers Give Back is
a fintech platform dedicated to making pro bono financial
planning easier and more effective for both financial
advisers and pro bono clients. In October, the organization
announced partnerships with two established fintech
companies, Steady and EarnUp, which collectively serve
more than 3 million low- and moderate-income individuals.
Those seeking help are not the only ones who benefit
from pro bono advisory work. It has also helped advisers
build empathy and understanding of a wider range of
issues faced by those dealing with unique challenges,
Iverson-Comelo says.
Long-Term Care
27% of retirees cannot afford minimal expenses
A STUDY from the Center for Retirement Research (CRR) at Boston College examined
whether retirees 65 and older will have the support they need without
exhausting their financial resources-and family caregivers.
The report found that only about 26% of retirees can cover severe care needs
for at least five years using income, financial assets and informal caregivers. To
determine what levels of care a retiree could need, the study considered total
care hours required, the amount of unpaid care that a family or friend could
provide, the amount of care that can be purchased, and the combination of
family care and financial resources.
On the most challenged end, 27% of retirees are unable to afford even the
most minimal care expenses, while 22% could pay for only minimal care. In
the middle, 25% seem able to afford moderate care, according to the study. The
paper notes that providing care, especially high-intensity care over long periods,
can have negative effects on the physical and emotional health of caregivers,
and individuals might not be willing to deplete their entire financial reserves,
leaving no buffer for emergencies.
Those who enter retirement married have the most resources to handle
the expense of medical care needs, while women who are unmarried have the
least. Only 31% who are married are unable to cover minimal levels of care.
That number goes up slightly to 33% for unmarried men and jumps to 56% for
unmarried women.
Clear patterns also exist when screening survey respondents by education
level, which the CRR says can sometimes be a good indicator of income.
Those without a high school diploma will have no resources for severe longterm
services and support, the study found. Only 13% of this group would have
enough to cover moderate to severe costs.
Race and ethnicity also affect what percentage of retirees have adequate
resources. Only 5% of Black and Hispanic individuals can cover severe care vs.
25% of white retirees. As to Hispanic individuals, 64% cannot cover even a year
of care, compared with 49% of Black retirees and 32% of white retirees. -DJ Shaw
" It has also helped
advisers build
empathy and
understanding ... "
There can be a sense of immediacy
when helping families who
have very little margin for error with
their finances, says Jon Dauphiné,
CEO of the Foundation for Financial
Planning. In contrast to high-networth
clients, the stakes for those
who benefit the most from pro bono
work are much higher, such as for a
family facing eviction.
Volunteers often advise on topics
such as how to build an emergency
savings fund, prepare a household
budget or prioritize credit card
debt-subjects they normally would
not deal with, Dauphiné says.
One challenge in this volunteer
work has been reaching those who
need assistance, Dauphiné notes.
Advisers associated with his organization
hold, on average, a total
20,000 pro bono sessions a year,
but there are millions of people
who need help. For aid with filling
appointments, he says, partnering
with fintech firms and working with
retirement plan advisers to build
a better infrastructure has been
vital. To this end, Iverson-Comelo
again emphasizes the importance of
collaboration. -DJ Shaw
14 | planadviser.com November-December 2021
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PLANADVISER - November/December 2021

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