Not only are most consumers ill-equipped to deal with the financial risks they face in retirement, they are also clinging to several misguided beliefs that are actually intensifying them. In addition, most financial services firms have not stepped up to the challenges facing the upcoming generation of retirees.

McKinsey recently surveyed more than 3,000 retirees and pre-retirees to get a comprehensive picture of their plans, concerns and patterns of interaction with financial firms over time. The survey further reveals that badly needed retirement advice is in short supply and firms aren't meeting consumers' expectations.

Despite these challenges, our research has uncovered four key opportunities for gaining competitive advantage in the retirement market:

	Capturing loyal customers at a much earlier age than is commonly thought feasible
	Systematically leveraging the power of referrals
	Retooling current product and advice offerings to better meet the changing risk profile of retirees
	Helping consumer monetize their home equity