Key Takeaways
- The RICP designation is awarded by the American College of Financial Professionals.
- Candidates must have three years of business experience to enter the RICP program.
- The self-study RICP program includes three courses and exams.
- RICPs must complete 15 hours of continuing education every two years.
What Is a Retirement Income Certified Professional (RICP)?
The Retirement Income Certified Professional (RICP) designation is a specialized credential for financial advisors who focus on retirement income planning. Offered by the American College of Financial Services, it requires coursework, exams, and experience. As more people reach retirement age, RICPs help clients manage their assets sustainably so their savings last throughout retirement.
In-Depth Look at Retirement Income Certified Professionals (RICPs)
According to its website, the American College of Financial Services gives financial professionals access to the education they need to achieve their career goals. Financial programs range from the chartered life underwriter (CLU) insurance specialty program—the first financial designation program offered by the school since 1927—to the more recent RICP.
The not-for-profit college located in Bryn Mawr, Pennsylvania, created the RICP designation to serve the financial planning needs of America’s increasing population of retirees and near-retirees. The knowledge required to accumulate retirement savings and the ability to use that savings to generate a comfortable and lasting income in retirement is considered two separate traits.
Fast Fact
The growing number of retirees is creating demand for financial professionals who can guide people in the optimal use of their assets during retirement—not just how to save for retirement as they age.
The RICP is designed for financial professionals who already have a broad-based financial planning credential, such as chartered financial consultant, certified financial planner, or CLU, or whose businesses already emphasize retirement income planning. Applicants must have three years of business experience in order to be considered for the program. According to the website, an undergraduate or graduate degree is the equivalent of one year’s worth of experience.
Important
To take the RICP program, applicants must already be financial professionals such as a chartered financial consultant, a certified financial planner, or a chartered life underwriter.
Designed as a self-study program, the RICP curriculum consists of three online courses that students must complete. They are as follows:
- Retirement Income Process, Strategies, and Solutions
- Sources of Retirement Income
- Managing a Retirement Income Plan
The program provides students with a series of best practices ranging from topics such as Social Security, risks in retirement financial planning, Medicare and other health insurance options, long-term care needs, as well as tax and estate planning. These arm RICPs with the tools they need to help their clients maintain their customary standard of living throughout retirement, address income gaps, create an estate plan, and limit risk.
Students must pass a closed-book 100-question exam at the end of each course. RICPs must adhere to a code of ethics and reporting requirements. Individuals with the RICP designation must also update their credentials with 15 hours of continuing education that they must complete every two years.
Important Considerations for RICPs
While many financial professionals are experienced in advising and helping individuals to accumulate retirement assets, the increasing number of retirees means there is a large demand for expertise in how to manage and use those assets. But fewer advisers have expertise in subjects such as how to determine the following:
- When a client is financially prepared to retire
- The rate at which retirement savings should be withdrawn
- How an individual’s asset allocation should change during retirement
- The best age for an individual to start claiming Social Security benefits
- How to pay for health care and nursing home care
- Late-in-life tax planning
- Retirement housing
The RICP program aims to fill the gap in the financial industry.
The Bottom Line
The RICP designation prepares financial professionals to guide clients through key areas of retirement income planning, from Social Security and Medicare to taxes and long-term sustainability.
Earning it requires three years of business experience plus three courses and exams, and maintaining it involves ongoing education. This training helps advisors support retirees with informed, durable strategies for managing their income.