Negativity
The report also found that longevity is frequently viewed negatively due to concerns that governments are not well prepared for the pressure on healthcare systems, social services and pension costs that an older population will bring.
Against this picture of governments and broader society not being able to cope with this fundamental demographic and societal change, survey respondents put forward the view that these concerns could actually be better addressed by supporting ‘seniors’ to maintain healthy lifestyles and to continue working later into their lives.
On this latter point, the report concludes that paid employment past the traditional retirement age remains a minority interest, with only a minority of respondents believing that employers respect the experience of older workers, with their input likely to be simply marginalised.
Planning
The negativity surrounding longevity is an important point for financial advisers as it underpins many clients’ belief that they cannot rely on the state to provide several key services that they will need in their long period of retirement, such as healthcare. A longer self-determined life requires a financial plan that will remove clients from dependence on state provision and give them the ability to make choices for themselves and their family.
“Addressing the challenge of longevity for each client should be at the top of each adviser’s agenda for their client meetings. Advisers can add real value and build the foundations for long term relationships, recommending solutions and products to meet changing needs as part of a holistic plan that includes estate and succession planning” said Le Foll.
As Warren Buffet once said, “It takes 20 years to build a reputation and five minutes to ruin it.”
