As a retiring population's wealth management goals shift fromaccumulation to decumulation, the wealth management industry isstruggling to catch up, according to a new Aite Group report.

Investment outcomes and lessons from 2008 continue to weighheavily on investors' minds, and many consumers were unable to dothe one thing necessary to enjoy a comfortable retirement: saveadequately, the report on the state of the U.S. retirement incomemarketplace noted.

As a result, retirement income firms across various silos –banks, broker-dealers, independent advisers, registered investmentadvisers, insurance firms, asset managers, and defined contributionrecord-keepers – are grappling with the question of how toconstruct appropriate and suitable retirement income plans forclients across various wealth bands.

“The shift from wealth accumulation to decumulation is wherefinancial advisers and distribution firms must transform theirpractice-management skills,” said Greg Cherry, Aite senior analyst and author of the report. “The accumulationpractices of the past are simply not sustainable as consumersdemand less market risk and an increased focus on one day replacingtheir paychecks with retirement paychecks.”

For many in the mass market and mass affluent segments, workingfor income will be necessary, as pre-retirees deal with sequence ofreturn risk, withdrawal rate risk and longevity risk, the reportnoted. Labor force participation rates have been trending up forthose 65 and older from a bottom of 12% overall in 1990, to 18% in2010, to a projected 22% in 2018.

“The challenge will be overcoming employer biases, especiallyfor those seeking to replace all or a large portion of their priorincome levels,” according to the report.

The Aite report is based on a July to September 2011 survey of 22senior financial services executives who serve the retirementincome marketplace.