Americans say they need $1.46 million to retire comfortably, according to a new study by Northwestern Mutual. That savings target has risen more than 53% since 2020, when U.S. adults believed they could retire on $951,000.

We can blame three years of historically high inflation for the perspective change. The worst of the price increases happened in 2022, when inflation rates exceeded 6% for the entire year and spiked at 9.1% in June, according to the U.S. Bureau of Labor Statistics.

Although price growth has moderated since then, consumers have become very familiar with how rising prices can increase their living costs and break their budgets. So, it's not surprising that retirement savings goals have skyrocketed.

However, advising clients to save more, invest more or buy more insurance may not be realistic unless the client can identify a funding source for those investments. For some clients, finding that funding source may not be difficult but the process begins with encouraging more comprehensive dialogue with your clients.

Here are four ways agents can assist clients with retirement savings goals:

1) Regular dialogue. In turbulent times, clients may appreciate more frequent and more comprehensive planning discussions. The nature of those discussions can focus on your specific area of expertise, but consider taking a wider view if your client is open to it. Topics to cover might include: 

• Net worth, current income and living expenses.
• Current wealth projections.
• Valuation of assets outside the investment portfolio, such as home equity and life insurance.
• How home equity, life insurance and other alternative assets can play a role in retirement contingency planning.

Having a current and complete understanding of your client's situation prior to making financial recommendations is more than a best practice; it's a necessary step to fulfilling your fiduciary responsibility.

2) Alternative assets. If those discussions reveal a current or expected shortfall in the client's retirement portfolio, there are a few available solutions. Working clients can save more but retirees must either lower their distributions or find wealth from some other source.

In this situation, it's worth exploring the client's alternative assets as potential funding sources. Home equity, fine art or the 1960 Pontiac Ventura in the garage can all be liquidated to protect a comfortable retirement. The economics of these transactions are straightforward. The bigger question is whether the client is willing to sell.

3) Life insurance. Life insurance can also be liquidated, often with lucrative results. Selling the policy in a life settlement can yield several times more cash than the policy's surrender value. Plus, clients rarely feel emotionally attached to their insurance coverage, which makes it an easier decision versus selling the primary home or the Pontiac.

Before approaching life settlement discussions, agents should ascertain whether life settlements are covered by their errors & omissions policy.

More advisors are realizing that their fiduciary role requires counseling clients on the best financial strategies available, which may include liquidation of life insurance. These advisors are calling on reputable life settlement brokers to value life insurance policies and predict potential cash proceeds for their clients.

If analysis reveals that a life settlement is the best way to get a client's retirement plan back on track, you can earn a referral fee and an override fee from the broker. You'll also earn reinvestment fees if the client puts the after-tax cash proceeds in your care.

4) Proactive planning. High inflation has reshaped wealth goals for retirement and will likely continue to impact clients in the coming years. Proactive conversations, contingency planning and periodic valuation of alternative assets such as life insurance can ensure your clients are prepared for anything.

Lucas Siegel is CEO of Harbor Life Settlements.