The term Retirement Income Certified Professional (RICP) refers to a financial professional who specializes in retirement income planning. Financial professionals earn the RICP designation after completing an intensive specialized program. Once qualified, RICPs expertly guide retirees and near-retirees on making the best use of the assets they have accumulated for retirement, helping them maintain a comfortable lifestyle and manage their budget effectively without prematurely depleting their resources.
Key Takeaways
- A Retirement Income Certified Professional specializes in retirement income planning.
- The designation is awarded to professionals who complete the RICP training program by a recognized financial education institution.
- RICPs assist retirees and near-retirees in using accumulated assets strategically for sustainable retirement.
- Applicants must have three years of professional experience in financial services.
- The RICP program encompasses three courses, each concluding with a rigorous exam.
Understanding Retirement Income Certified Professionals (RICPs)
The American College of Financial Services is renowned for offering educational programs that enable financial professionals to achieve their career aspirations. This includes long-established credentials like the Chartered Life Underwriter (CLU) as well as more recent designations like the RICP. The RICP designation was developed specifically to address the financial planning needs of a growing population of retirees and those nearing retirement.
Accumulating savings for retirement demands one set of skills, while efficiently managing these resources to ensure a lasting retirement income requires a different specialized knowledge. Given the increasing number of retirees, there is a significant demand for financial professionals who can expertly manage their clients’ retirement assets.
The RICP is tailored for financial professionals who already possess broad financial planning credentials such as Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), or CLU, or those whose businesses focus on retirement income planning. Applicants need a minimum of three years of professional experience, with academic degrees substituting for experience partially.
The RICP Curriculum
Offered as a self-study program, the RICP curriculum consists of three comprehensive online courses:
- Retirement Income Process, Strategies, and Solutions
- Sources of Retirement Income
- Managing a Retirement Income Plan
These courses cover best practices in areas like Social Security, retirement planning risks, Medicare and other health insurance options, long-term care, tax and estate planning, equipping RICPs with the necessary tools to help clients maintain their standard of living, bridge income gaps, plan estates, and mitigate risks.
Students must pass a closed-book 100-question exam at the end of each course. Additionally, RICPs must adhere to a strict code of ethics and meet ongoing reporting requirements. The RICP designation also mandates 15 hours of continuing education every two years to ensure professionals stay current with the latest industry practices and knowledge.
Special Considerations
Despite many financial professionals having expertise in helping individuals accumulate retirement assets, fewer possess the specialized knowledge required to manage these assets efficiently during retirement. RICPs fill this gap by providing the expertise needed to:
- Determine when a client is financially ready to retire.
- Calculate sustainable withdrawal rates from retirement savings.
- Adjust asset allocation during retirement.
- Choose the optimal age to begin claiming Social Security benefits.
- Coordinate healthcare and long-term care financing.
- Plan taxes effectively later in life.
- Address retirement housing needs.
By enrolling in the RICP program, financial advisors can acquire the necessary skills to meet the increasing demand for retirement income planning expertise, critically supporting the financial security of retirees.
Related Terms: retirement planning, financial advisor, social security, Medicare, tax planning, estate planning, certified financial planner.
References
- The American College of Financial Retirement. “Retirement Income Certified Professional”.
