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.
“We need to make sure that older customers are empowered with the information they need to make decisions about their finances. If you look at any major lenders’ website you will find consumer guides aimed at first-time buyers. Financial services does not become less complicated as you get older, in fact with all of the recent changes to pensions, the way we live our lives and the fact that retirement is increasingly a process rather than an event it can become increasingly complex.
“Secondly, firms should consider having someone at a senior management level who is a strong advocate for the needs of older customers. This ‘Older Persons Champion’ should think about whether every part of the business is geared to serve older customers. Are there appropriate communication channels in place? Are staff trained on how to interact with customers with differing needs in later life? Are they aware of the existence of Lasting Powers of Attorney? Are product portfolios appropriate in meeting the needs of older customers?
“Retirement is increasingly a process rather than an event; people retire from work, they do not retire from life. Older people or retirees are not a homogenous group, their needs vary as much as at any life stage. If a person is fit and well they will want access to the same suite of financial services products as anybody else. If a person is in deteriorating health, either mentally or physically, then they need to be able to access their finances in an appropriate manner without feeling that they are a burden on their family.”
