Financial advice for older consumers: What IFAs need to know
By Kirsten Hastings, 23 Feb 16
Older consumers are a diverse population, with different beliefs, behaviours and needs, all of which affect the way in which they interact with money and financial services, according to a new discussion paper from the Financial Conduct Authority. So, what do IFAs need to take into account to meet their needs? Click through the pictures below to find out.
Linda Woodall, director of life insurance and financial advice and sponsor of ageing population project at the FCA, said: “One thing we do know is that one size does not fit all.
“Within diverse groups of consumers, an individual’s needs and attitudes can change over time. While someone retiring in 1965 would have expected to enjoy only a few years of retirement, (with the average life expectancy in the UK at just under 72), now it is not uncommon for retirement to last two to three decades.
“While life expectancy is improving, there are some trends which we should not ignore. As we age, we are increasingly likely to suffer with health conditions and this brings forward a number of challenging issues, such as the provision of long-term care, handling cognitive decline, and ensuring appropriate access channels are available to those that need them.
“Evidence also suggests that as we age we tend to rely less on reasoned, deliberative thinking and more on gut-feel and things learned through experience. Older people also find it more difficult to navigate the proliferation of choice. This emphasises the importance of framing products and services in a way that meets the needs of older people.”
