Three Sisters Group at TEDx Canberra

“It’s time to look at where we want to go. To create a new future. A different future. A future that utilises and maximises this gift of longer lives.”

~Catherine Rickwood, TEDx Canberra 2018~

September was an exciting month for Three Sisters Group with our Founder, Dr Catherine Rickwood, stepping onto the red dot – the round red carpet that adorns stages for TEDx events around the world. Catherine’s compelling TED talk took us on a journey that questioned the long-held premise of retirement and how we currently live our lives – at a time when our lives are so long and becoming longer.

What are the implications of longer lives for organisations?

It’s crucial that organisations start re-imagining their workforce and create structures, policies and practices unbounded by existing age stereotypes. It’s time to acknowledge the impact of our ever-increasing life spans and challenge our current approaches to older workers and customers.

“Remove the invisible but fully present age ceiling in our thinking, attitudes, beliefs and behaviour about what we believe people can or can’t do based on their age.”

~Catherine Rickwood, TEDx Canberra 2018~

Why?

Because traditional views of ageing (ones of decline and decrepitness) no longer stack up. Imagination and innovation are limited by our outdated understanding of what it means to age. Today older Australians (aged 55 and above) are typically wealthier, healthier, more active and more technically savvy than previous generations. And, as Catherine says:

Planning our working lives to this end point in our sixties limits our potential and robs our world of knowledge, skills and experience that could contribute to positive social, economic and environmental change”.

 

What next?

Discover the revenue benefits and cost savings of building business and HR strategies that smash age stereotypes and eliminate ageism. Consider introducing one of these 3 strategies:

  1. Intergenerational job-sharing.
  2. Product innovation through co-design with customers of all ages.
  3. Communications audit of printed and electronic media. How are age stereotypes being reinforced?

In addition, hiring managers and HR teams – have you considered the impact of enforced retirement age policies? What retraining opportunities exist for all staff and do you have a cross-mentorship program?

And product designers, developers and marketers – have you thought about diversifying the product offering to the over 55s? If so, are you treating the over 55s as one homogenous customer segment or developing products and marketing campaigns based on outmoded cultural stereotypes – like Apple?


ABOUT THREE SISTERS GROUP

Three Sisters Group specialises in working with organisations to develop age-inclusive business strategies. Addressing ageism, age stereotypes, and removing biases associated with generational labelling are foundational to our work as these issues limit creativity and opportunities.

Sought for her strategic skills, insights on longer lives, and as an informative and inspiring speaker, Three Sisters Group Founder and CEO, Catherine Rickwood, has developed a reputation as one of Australia’s leading experts on the ageing population.

Contact us to find out more about our services and/or to arrange a complimentary one hour consultation.

The Apple watch: Ageism – built-in

The new Apple watch has some cool features – thinner body, bigger screen, faster processor, a built-in electrocardiogram (EKG) for heart rate monitoring and a fall detection feature. Where’s the ageism? The fall detection feature. Why? Because for any Apple user over 65, it automatically switches on the fall detection feature when they start using their watch. Therefore, this assumes that everyone over 65 years old is frail, doddery and vulnerable to falls.

Avoiding ageism through universal design

Ageism is defined as discrimination against people on the basis of age; specifically, discrimination against, and prejudicial stereotyping of, older people” (Collins English Dictionary). It routinely occurs in workplaces and the broader community through discriminatory employment practices, lack of visibility in advertising, stereotypical portrayal of older people in the media, and in our language – e.g. “he/she is cute” or “he’s just a cranky old b****!”

As a result of the cultural pervasiveness of ageism, products and services rarely consider the needs and pain points of older people. Or, they’re designed based on age stereotypes. Universal design addresses this problem.

What is universal design?

The Centre for Universal Design Australia uses this definition from Canada:

“Design that considers the full range of human diversity with respect to ability, language, culture, gender, age and other forms of human difference”.

However, according to the Research Institute for Consumer Affairs (RICA) in the U.K. (2016) there isn’t evidence of systematic inclusion of older people throughout the design process.

The #1 key to universal design

Essential to inclusive or universal (used interchangeably) design is understanding the customer or recipient of the product or service. The importance of this is recognised by many organisations, evidenced by the burgeoning dialogue on the concept of co-creation (a Google search provided 547 million results). The #1 key?

Customer insights.

In other words, understand the customers or users of the product – what are their needs, wants & pain points?

Beware: Ageism inhibits innovation

And when it comes to product or service co-creation and universal design for older people, beware of ageism and age stereotypes. These may be held by both the customer and/or internal staff. These stereotypes can inhibit truly better design. The opportunity is to design a car (not a faster horse), or a smart phone (not simply a better mobile phone).

“We’re always working with community members. They always come up with things that you would never think of.”

Rajna Ogrin, Senior Research Fellow at Bolton Clarke

With Australia’s population ageing, it’s essential that organisations include older people in their design processes. Moreover, as over 50% of the older age group are in rural and remote areas, it’s also important to consider the differences between rural, remote, and urban areas, as this short video with leading experts in the field affirms.

Contact us today to find out how your organisation can generate meaningful customer insights. Through our bespoke programs, we enable organisations to create, together with their customers, products and services that are unbound by ageism, age stereotypes and generational labelling.

If you’d like to find out the lessons we can learn from Apple when it comes to creating an age-inclusive workforce, read on here.

 

Photo by Tom The Photographer on Unsplash

geriatrician

Age inclusiveness: lessons from a gerontologist

Have you heard of a geriatrician?

Don’t be surprised if you haven’t. They are specialists that we discover when we’re older or when we have elderly parents or grandparents with a range of physical and/or cognitive health challenges. Geriatricians focus on the health of older people – they are like a specialist GP for the elderly. They often work collaboratively with other specialists and allied health workers for their patients’ wellbeing.

Introducing Glenda Powell OAM…

Glenda Powell was the first female geriatrician in Queensland, the first female president of the Australian Association of Gerontology (AAG), and in 2002 was recognised for her substantial contributions to work around ageing by being selected as a member of the Order of Australia.

I had the honour and privilege of interviewing Glenda Powell. Glenda is inspiring – as a woman and as an older person. She has been unafraid to break new ground and continues to make contributions in her field by doing medical legal work and sitting on tribunals.

Key takeaways

Key takeaways from my interview with Glenda that are relevant for us all are:

  1. Embrace age diversity. An equality attitude (i.e. no ageism) occurs in an interactive, intergenerational work environment.
  2. Collaborate. The unapologetically collaborative approach that spans all specialisations and allied health services in gerontology is what enables the effective total care of each elderly person.
  3. Don’t judge a book by its cover. Respect for older people and treating them as a person – regardless of how they look on the outside helps to create positive patient outcomes.
  4. Be open and seek new information. Discoveries are being made all the time that provide information for us all to have a better, healthier future. For example the role of exercise in keeping our brain healthy – unknown at the time Glenda started her gerontology career.
  5. Develop healthy ageing habits. People are becoming more aware of the lifestyle choices they can make to ensure an active and healthy ageing.

Interview Highlights

Some of the highlights of the interview* are below. Glenda’s insights are helpful for anyone interested in building more age-inclusive workplaces, business and marketing strategies.

CR: What have you noticed about the ageing population in the time that you’ve been involved?

GP: They’re almost becoming younger because I am in the ageing population myself…I think people are taking more notice, perhaps not soon enough, about the things that they can do themselves to ensure an active ageing. And if we’re blessed with no disease we can live happily for a long time and stay active.

And one of the greatest things that I have discovered through the Queensland Brain Institute is that exercise helps those little neurones in our brains sprout. I was always taught that neurones died and that was it. We had so many million in our brain and once they went, they went. Not so. So those of us who are interested in keeping our neurones going can think that as we’re exercising, those neurones are sprouting and we’re doing something towards our own active ageing.

CR: Eternal youth.

GP: Well, not quite, but almost…the most important thing is not to live long, but to live while we’re alive. And I think we must try and stay active both in mind and in body. And as I say if we’re blessed with no disease we can do that for much longer now.

CR: And do you think there’s been a change in philosophy and approach by geriatricians and how they work with older people?

GP: I think, to be quite honest I still have the same philosophy that I had 50 years ago. I think the philosophy has always been respect, and to not strive officiously to keep alive, but to keep comfortable and to keep active. I think we have always worked in the team, and I think that’s our benefit as geriatricians. We’re not a one man band. I couldn’t do what I did in geriatric medicine without the nurse, the physio, the social worker, all those other people.

So we are intergenerational, we’re interactive. For some of my young co-workers I could have been their grandmother, but we’re still equal.

CR: It just sounds like as a profession geriatrics has always been inclusive, and respectful, and holistic.

GP: I think we’ve always had that respect for the older person and treating them as a person. Just because we’re old doesn’t mean we stop being who we were when we were 20 years old. We’re the same person inside just with an older face with a lot more wrinkles.

CR: And what do you see for the future with regards to geriatric care?

GP: I think we will go from strength to strength. I think we will be the last bastion of the general physician. We’ll be the last profession that looks after the total person because there’s a lot of sub specialisation in medicine now. I mean one person can go to the kidney clinic, and to this clinic, and the heart clinic, and the lunch clinic. We look after the whole, but we do bring in consultants in special areas when we feel we need to.

 

*Note: The above interview was conducted at the Australian Association of Gerontology (AAG) Conference in 2017. This was one of numerous interviews undertaken that encompassed everything from housing to rural communities and employment. Three Sisters Group would like to thank Glenda Powell OAM for participating and the AAG for their support.

 

Call Dr Catherine Rickwood today to start a conversation about how your organisation can harness the benefits of an age-inclusive workplace and business strategy. We work with marketing and human resource teams that incorporate a diversity & inclusion and customer experience philosophy to create products, services, processes, and programs that are more inclusive of older people.

To learn more, visit the Three Sisters Group website or connect with us via LinkedIn or Twitter.

Beyond the Great Australian Dream

For decades, Australians have held home ownership to be the mark of status and success in life. However, this ignores the more basic and fundamental role of owning our own home, including physical shelter; physical and psychological wellbeing; and a source of wealth that can facilitate financial security. With home ownership on the decline, what are the implications for older Australians in the future?

“So much of the rhetoric that is out there is premised on the fact that people own their own homes and yet data is showing that over the last three to four census periods that’s happening much less. People are not retiring owning their own homes, whereas previously they did.”

Dr Victoria Cornell*

Home ownership on decline

Recent census data reveals that home ownership is declining – particularly amongst those under 55 years of age. Assuming that everyone in Australia in the future will own their home in their 50s and beyond ignores current data trends. According to the Grattan Institute there’s a possibility that future Australians will be ‘permanent renters’. In fact, this Grattan Report suggests:

“It’s been a perfect storm of rising incomes and falling interest rates, rapid migration, tax and welfare settings feeding demand, and planning rules restricting supply.”

Furthermore, homelessness is increasing. According to the Australian Bureau of Statistics, there are 116,427 people who are homeless. 18,625 of these people are over 55 years old, a 28% increase for this age category since the 2011 census. Of this older cohort, most notable is the increase in older women experiencing homelessness – there was an 83% increase in the number of women over 55 homeless and couch-surfing between 2011 and 2016 alone.

Housing and longer lives

Homelessness and reduced home ownership have significant implications in the future as we become older and our lifespans increase. What happens if we don’t own our home in our 70s, 80s and 90s? Where will we live? Who with? How do we build homes and create communities today to accommodate the changing home ownership trend? Moreover, how can we build homes that see people through multiple life stages? Finally, how can we make age friendly everyone’s business?

Implications for housing older Australians

Previously we’ve written about the steps for housing innovation. This process is one that governments, savvy designers, builders, developers, urban planners, and architects would all benefit from incorporating into housing developments and designs. However, when it comes to housing solutions for providing affordable housing for the elderly to reduce homelessness and accommodate declining home ownership it requires a radical rethink in both government policy and private sector approaches. Developments like Mirvac’s build-to-rent club in Sydney Olympic Park and the Communities Plus housing site in Redfern are just the start.

The future of housing

Three Sisters Group interviewed experts in the fields of housing and urban design. For a quick summary of their insights on our housing future have a look at this short video.

Will you own your own home when you’re in your 60s, 70s or beyond? Perhaps you know someone who will face the challenge of being a permanent tenant.

If you’d like to further understand the implications of housing in the context of our burgeoning ageing population for your business or community, call us on 0422 002 202.

 

*Dr Victoria Cornell is Postdoctoral Research Fellow at The University of Adelaide and Convenor, Housing and Built Environment Special Interest Group, AAG.

Photo by Andreea Popa on Unsplash

It’s not a house. It’s a home.

Our homes have deep meaning in our lives. We not only have physical dependence on them to meet our basic needs; we’re emotionally attached to them – no matter where they are or what they look like.

The classic line, “It’s not a house; it’s a home.” was made famous by Darryl Kerrigan in The Castle in 1997. However, the sentiment behind these few words are as relevant today as they were when we first heard them.

The question is: what makes a home? The reality is the answer will be different for every person. What’s important is that we ask the question in the context of the changing landscape of home ownership and longer lives. To do this, Three Sisters Group interviewed experts in the field of housing and urban design. This short 3 minute video shares their insights.

“The communities that will do well into the future are the ones which are compact, connected, are intergenerational and do provide people with the option of using an alternative to driving.”

Distinguished Professor Billie Giles-Corti – Director, Urban Futures Enabling Capability Platform

 

To find out how Three Sisters Group can help your organisation understand housing in the context of the burgeoning ageing population call us on 0422 002 202.

You can also follow us on LinkedIn, Twitter and YouTube for more insights in this space. From our blog, these are our top picks on homes and housing:

Guest blog: Ageing. That’s life.

Popular culture would have us believe that once we are forty, we are more or less washed up and on a downhill trajectory. It’s easy to agree with this view if our thinking is aligned with cultural conditioning that sees age as a category (of young or old) rather than a continual process across the life course.

We live in a time where there is optimal knowledge, networks and shared experiences. This provides us with the opportunity to use a broader lens with which to view the world and ourselves. Paradigms are not only shifting but also morphing. Age categories have become blurred as we realise that this thing called ‘ageing’ is a life course matter.

We count no matter what our age is.

Things do not necessarily come to a screaming halt after our 50s or 60s. In fact many of us will live long active lives until our 80s or 90s. So why do the myths, attitudes and stereotypes about age persist?

It’s one thing to insist that we should not have stereotypical attitudes about age, but another to explore some of the factors that contribute to these pervasive ageist attitudes.

Ageism, culture & attitudes

Our individual worldview is arguably the combination of our personality, preferences and the internalised cultural layers that we grew up with. These are strong influences in our psyche. If we grow up in a culture that continually reveres youth, and diminishes the value of the old, we run the risk of internalising ageist views. This makes it hard for ourselves when we move from ‘in-group’ (young) to the ‘out-group’ (old, and “over the hill”). If we have adopted the view that age is a category of either ‘young’ or ‘old’ we become disheartened when we no longer belong to the ‘revered group’. This leaves us feeling diminished and irrelevant. Yet it is due to our own thinking.

Live longer: 5 ways to be positive about ageing

Studies have shown that those with more positive self-perceptions of ageing tend to live over 7 years longer than those with less positive attitudes. They also enjoy better functional health as they reach their senior years. So, start peeling back some of these cultural layers that hold negative messages about age with these five things:

  1. Understand that ageing commences from the time of conception and continues until death (not from an arbitrary number like 40, 50 or 60 etc).
  2. Ageing is a natural part of the life cycle.
  3. Be honest with yourself about your age. Embrace it, and flourish within your current stage of life instead of wishing for past stages (reminiscing is one thing, fixating on the past is another). Live in the present.
  4. Let go of ideas of wanting to look, seem, dress or act ‘younger’. Also, don’t give compliments by stating someone looks ‘younger’ than they are, or doesn’t ‘look’ their age.
  5. Live a full life. Be friends with people of all ages. Being younger is neither better nor worse than being older. Realise that no matter what your age, you will continue this journey, god willing, until you are at the age when you need the help of your great-grand kids to blow out your birthday candles!

If you’d like to know more, contact Three Sisters Group – specialists in providing knowledge and insights on the burgeoning over 50s market.

Photo by Lucas Gruwez on Unsplash

 

Age-neutral customer service: Lessons from Apple

Have you ever been frustrated with a customer service representative – whether on the phone, via email or face-to-face?

Why the frustration?

Maybe you felt misunderstood. Or, perhaps the person was constrained by a script, process, system, or structure of their training program. Maybe the person you were speaking with hasn’t been empowered to make good decisions for the customer that leads to better outcomes for everyone.

Too often we hear stories of poor customer service. This is particularly true amongst older people who may not be as technologically literate as their younger counterparts – like ‘Mary’ in this article. Regardless of age, we all want to feel understood. And most importantly, if we’re contacting customer service, we want our problem resolved effortlessly, without stress or anxiety.

Apple’s age-neutral customer service

If you’ve ever walked into an Apple Store, you’ll know the experience of feeling immediately welcomed. From the environment to the staff we feel good; even happy. How do I know this? Because I’ve experienced it myself. I also feel confident that any problem, however trivial or complex, will be understood and solved – effortlessly and easefully. I haven’t felt quite the same way in any other retail store or customer service environment.

So what is it that makes Apple different?

  • Staff reflect the diversity of Apple customers.

Take a look next time you’re in an Apple Store and you’ll find a team of all ages (and cultures and genders).

  • Apple “starts with why”

Apple’s customer service culture – a legacy of Steve Jobs – is one of supporting customers to both use and enjoy their Apple technology. The company starts with the customer experience and then works backwards to the functionality of their technology.

In Simon Sinek’s popular talk, he suggests that Apple “starts with the why” rather than with the ’what’ (i.e. its products). The focus is to solve problems and “enrich lives”. Consequently, Apple’s interactions with its customers transcend age biases and stereotypes. Furthermore, there’s very little room for ageism when you’re driven by good customer outcomes rather than sales commissions.

The customer service imperative

The 2016 KPMG Global CEO Survey, revealed that 88 per cent of CEOs are concerned about the loyalty of their customers. The reason is because 82 percent of people will turn away from a business due to a bad experience. And disenfranchised, unhappy customers or ex-customers are highly likely to spread the word to others about their bad experience. Unfortunately, it’s bad experiences that remain with us much longer than good ones – a widely known quirk of the human psyche.

Conversely, a recent report showed that 8 in 10 customers are willing to pay more for a product or service when they experience good customer service. Clearly, good customer experience (CX) can drive business success and growth.

The age-neutral customer service imperative

A recent UK cross-industry study showed that the older people get, the less satisfied they are with customer service. Given the vast spending power of the baby boomer generation, ageist attitudes amongst a customer service team is likely affecting your bottom line.

Baby Boomers will be the single largest consumer of products in the future. Consequently, companies can’t afford poor interactions with this ever-growing, cashed up, technology literate market segment. Fail to integrate baby boomers into your customer service strategy at your peril.

The future of age-inclusive customer service

Given the value of the ageing population; the impact of negative customer experiences; the average age of customer service teams; and the poor experience of many older people, it’s essential that Chief Customer Officers:

  1. Create age-diverse customer service teams.
  2. Challenge age stereotypes amongst their staff.
  3. Understand the diversity of customers over 50 – they are not a single homogenous group with identical attitudes, beliefs, or technology literacy*.
  4. Include flexibility in scripts that accommodates a diverse customer base.
  5. Empower customer service representatives to make decisions that delivers a great outcome for the customer and the organisation.
  6. Ensure their customer service teams understand the “why” of the business and they are purpose-led rather than sales-led in their interactions with customers.

 

Three Sisters Group delivers expertise and research-driven consultancy services on the longevity economy. We provide knowledge, understanding, and workshops for customer-driven, strategic change. Contact us today to create an age-inclusive customer experience.

*I’m amazed at how often people assume that when I mention Three Sisters Group specialises in the over 50’s market, that they think I’m talking about aged care. A baby boomer (between 54 – 74 years old) is not generally in the market for aged care. They are in the same market for the goods and services you’re buying today. And whilst Three Sisters Group doesn’t specialise in aged care we do work with organisations seeking to enter or gain growth in this market.

Image source: Shutterstock

Mind the gap

Mind the gap: Does your organisation have the capability to deliver against the customer pain points of the over 50’s?

Mind the gap.

If you’ve ever caught the London Underground, this cautionary warning would be familiar. ‘Mind the gap’ is also a valuable analogy for customer pain points in business.

A desire to understand and focus on the customer experience (CX) or user experience (UX) is the language of marketers – online or offline. Simultaneously, customer journey mapping has become increasingly common. Yet, how often do we also seek to understand and investigate the challenges of key stakeholders and staff to provide an excellent customer experience – particularly for those customers over 50 years of age? What’s the gap between customer reality and employee empathy?

Whilst a customer focus enables us to better understand the decision-making process of people using or buying our products, stakeholder and staff insights provide greater understanding of what is required internally for improved service delivery. Knowing both is essential if customer pain points are truly to be resolved.

The pain points

Pain points will appear in various parts of the business – either online, on the phone, or in person. An example illustrates some of the issues.

Recently a woman in her 70’s, call her ‘Mary’, told me the difficulties of cancelling her subscription to a television service. After a lengthy conversation with a customer service operator, she was only passed to a supervisor after revealing that she was about to cry.

The pain points:

  1. The call centre staff member was bound by a script that didn’t accommodate a customer with limited technological ability;
  2. The process for cancellations was inflexible. Apparently, the only way a customer can cancel the service is online. Consequently, the operator was trained to “talk through” this process with customers who had difficulty;
  3. A solution was only sought when tears of frustration were imminent.

The result

Mary,

  1. Won’t have another pay television subscription service;
  2. Will never return to the telco provider who consistently lacked awareness and empathy;
  3. Tells her friends and anyone else who will listen about her experiences.

Whilst Mary has a mobile phone, uses an iPad, does online banking, and happily searches Google, she lacks confidence to do new tasks in the online world. The call centre staff member failed to understand Mary’s situation and was therefore unable to accommodate her needs.

Due to years of frustration and poor customer experience caused by a lack of understanding, Mary has also changed her phone provider. In one instance she was sold a plan that provided her with substantial download capacity. However, she had advised staff that her mobile phone was only used for texts and calls. When in the telcos retail stores she consistently observed people her age upset and angry due to lack of empathy by store staff.

Whilst this anecdote is a single sample, it’s a common story.

Gaps and the over 50s

Leading magazines, blogs, and newspapers consistently report on the ignored market of our ageing population.

A report by the Australian Services Union reveals that the average age of call centre staff is between 33 (men) and 37 (women). A report by PwC in 2016 revealed that the average media person is a 27 year old white male who only speaks one language – English. It’s likely that employees under 40 will either ignore or exacerbate stereotypes of consumers over 50. Why? Because they don’t identify with this older age group.

Gaps, facts, and 50’s+

Yet, in Australia, there are almost 6.5 million people between 50 and 74 years of age. That’s 27% of the total population!

The value of this age group is substantial. According to the Australian Bureau of Statistics’ (ABS) 2017 Census, the average age of middle wealth households is 54, and for high wealth households it’s 58. And, whilst a proportion of this wealth is associated with increased expenditure for medical care and health expenses, the ABS also reports that,

“Recreation, household furnishings and equipment, clothing and footwear, and miscellaneous goods and services also rose as net worth rose.”

Consequently, when we evaluate market size against wealth, it seems naive not to have a strategy to reach and effectively service this audience.

Nonetheless, despite these facts, age stereotypes and ageism negatively impact attitudes, beliefs, and perceptions about people over 50.

Finding the gap

A customer journey map is simply a framework that captures the customer experience. A customer journey map overlaid with either staff interviews or staff journey mapping reveals the gap. One without the other is interesting and informative. However, to optimize the opportunity, organisations must ‘Mind the Gap’. The gap is where true opportunity exists.

Given that almost one-third of Australia’s population are baby boomers, it’s remarkable that organisations are not more mindful of this market. After all, chances are that a proportion of most companies’ customers will be in this age bracket. Does your staff understand them? Or, do age stereotypes abound?

Speaking with staff potentially reveals unknown or unspoken age stereotypes. Internal pain points will reveal restrictions that limit market growth with this rapidly expanding segment of the population. Knowing staff attitudes and beliefs about becoming older, coupled with insights on customer pain points has the power to reap rewards – to plug ‘The Gap’.

Closing the Gap

Closing the gap requires guts. Consequently, it means addressing both customer and organisational pain points. For example, staff may need training, processes may need adapting, or organisational structures may constrain service. Change starts with these 4 questions:

  1. What proportion of your customer base is over 50 years old?
  2. What’s the impact to your business if they disappeared?
  3. What proportion of your workforce is under 50 years of age?
  4. What are their attitudes and beliefs about people over 50? Ask. Answers are usually associated with age-based stereotypes.

If a gap exists then business growth is inhibited.

 

Three Sisters Group specialises in the longevity economy. We provide expertise and research-based consultancy services for customer driven strategic change. To tap into this under-serviced, largely ignored market, contact us.

Can financial planners change the conversation about ageing and retirement?

Yes! In fact at the recent Professional Planners Post Retirement Conference I suggested that financial planners (FP’s) had both an opportunity and responsibility to dig deeper with their clients on understanding ‘retirement’. Typically, clients are seeking clarity about their financial situation. However, in digging deeper, FP’s are likely to discover that their clients haven’t considered the details of life after full-time employment. And herein lies the opportunity.

In 2015 Deloitte released a report – The Advice Based World – and suggested that the financial advisory industry had a bright future. With the shift to a fee-for-service remuneration model, financial planners are at a point where they can position themselves as Advisors – not solely financial planners. What does this mean?

Financial Planner vs Advisor

What is a financial planner?

According to the Australian Security and Investment Commission’s (ASIC) ‘MoneySmart’ website, a financial planner is: 

“a person or authorised representative of an organisation, licensed by ASIC, to provide advice on some or all of these areas of your finances: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation.”

Note the emphasis on finances.

What is an Advisor?

According to the English Oxford Dictionary an advisor is:

“A person who gives advice in a particular field.”

What if financial planners broadened their service offering beyond guiding their clients on money management and creating the nest egg for retirement?

What if financial planners became advisors to their clients? Advisors on preparing for life beyond full-time work, or the job their client may currently be doing. What possibilities would arise both for the advisor and their clients?

Changing the ageing conversation

Most of us will live into our 80’s and beyond. If we ‘retire’ at 65, are we really going to thrive and enjoy 15+ years of leisure? And for those planning an early ‘retirement’ at 55 or 60, that’s potentially 25+ years of … leisure? Really?

As an advisor specialising in ‘retirement transitioning’ or ‘life transitioning’, there’s an opportunity to introduce a range of products and services to challenge the idea of retirement. To not see it as an endpoint but rather as a time to reinvent ourselves. In fact, a planner recently told me that he’d renamed it ‘retyre’: finishing full-time work is an opportunity to change the wheels to ensure many more miles of activity.

If it’s not all about the money, what is a rich life?

We all know that money isn’t everything. For most of us, it’s a means to an end. It provides us with greater choice in our life.

One of the challenges often faced in retirement is relevance deprivation. To age well, and I mean really well, money ain’t enough. Individually, we must all continue to have intangible assets in our lives such as purpose and meaning; social relationships; and, physical exercise.

Because we’re living longer than at any other time in history, there is no model for how we age. In fact it’s our opportunity to innovate ageing. To age differently to our parents, grandparents, or great grandparents.

What does this mean for financial planners seeking to add value to their clients?

  1. Establish what is important for your clients – dig deep on their fears, uncertainties, and doubts about retiring.  
  2. Explore their hopes and aspirations.
  3. Coach clients to envisage and then create the next phase of their life. A life that could potentially be greater than they had previously imagined.

From financial planner to advisor

Financial planners are already subjected to changing educational requirements and standards. Particularly since the Financial Adviser Standards and Ethics Authority (FASEA) was established in April, 2017. Introducing a broader range of products and services that extends beyond financial advice requires planners to either:

  1. Undertake training as a coach, or
  2. Collaborate with a coach or organisation specialising in life transitions.

Clearly, it’s a commitment and not necessarily suited to all planners.

Fortunately, the shift to fee-for-service, introduced a number of years ago, assists with the transition. Clients are already aware that the days of financial planners earning their money from commissions are gone. Clients know that they pay for each service provided and the financial planning industry has restructured their pricing models accordingly. Consequently, financial planners who broaden their skill set could either:

  1. Build this into more comprehensive retirement planning products for added value; or
  2. Create new products and services offered at an additional cost.

3 benefits of being an advisor vs a financial planner

For planners prepared to make the investment and venture down this path, they could potentially deliver:

  1. Increased client satisfaction;  
  2. Improved client experiences;

And isn’t that what all service-based businesses seek?

However, there’s a third benefit:

  1. A healthier, happier, ‘retirement’ or next stage for clients aged 55+ who are ready to move on from the job or work they’ve done for most of their lives. And this contributes to changing the conversation about ageing.

Ultimately, a ‘rich’ life, a ‘wealthy’ life, is far greater than accumulated assets or money.

What does this mean for my financial planning business?

Over the next 15 years all baby boomers in Australia will reach the traditional retirement age of 65 years. Consequently, the time is ripe to start having these deeper and challenging conversations with your clients. There are numerous ways in which a planners might start to investigate the possibilities with their clients. This could include one-on-one conversations, small groups, or seminars. However, what’s essential is to ask open-ended questions, be genuinely curious, and unattached to outcomes.

Three Sisters Group specialises in providing expertise and research-driven consulting on the over 50’s. We deliver knowledge and understanding to create customer-driven strategic change.  

If you’d like to discover how Three Sisters Group can help to broaden your service offering to meet your clients’ changing needs, please contact us.

 

Dr Rickwood challenged the concept of retirement in her keynote address at the Professional Planner Post Retirement Conference. We’ll be sharing a video shortly with some of the key insights from the presentation. Stay tuned!

Are smart homes the key to healthy ageing?

It’s time we scrapped the idea of smart homes as the province of the young and digitally savvy. Research shows that smart homes could be the cornerstone of healthy ageing. In fact, smart technologies enable older Australians to live longer, safely, and independently at home and in the community.

Baby boomers such as Bill Gates and Steve Jobs made technology accessible to everyone. The internet came to market during the 70’s. This availability of computers, laptops, and information at our fingertips means that the majority of baby boomers are technology literate. So whilst considered ‘technology immigrants’, on the whole, this generation embraces technology.

Consequently, there is an unrealised opportunity to market smart home technologies to baby boomers. The boomers have larger purchasing power and higher levels of education than previous generations. They are also fitter, healthier, and more technology literate than their parents or grandparents. And, this generation want to remain in their own homes. Forever. Moreover, they expect to use intuitive and cost-effective technology, particularly if it promotes independence, quality of life and well-being.

As Dr Helen Meese from the Institute of Mechanical Engineers suggests:

“Creating a home which encourages its occupants to stay mobile and active as they age has the potential to keep them both mentally and physically fit for longer.” 

So what does the future hold for smart homes for older Australians?

The New Aged Home

A smart home is:

“a residence that uses internet-connected devices to enable the remote monitoring and management of appliances and systems, such as lighting and heating.” 

However, besides the image of the high tech ‘aware’ home, the wide range of smart home technologies available to support older adults to live at home and remain independent, is largely unknown. From passive and active sensors; monitoring systems to environmental control systems; and electronic aids to daily living – technology has the potential to transform our lives as we age. And let’s not forget Voice-First technology – a multilingual technology with enormous potential. 

Although as Laurie Orlov suggests there are still many questions and much research to be done to understand whether “Voice-First” is more hype than helpful.  

Australia is considered slow in the smart home technology uptake. However, this is predicted to radically change. In fact, the industry is forecast to grow from a $377million industry in 2016 to a $4.7billion industry in 2021. 

What’s the Impact?

Delivering enhanced customer experiences (CX) for business growth is the mantra amongst marketers today. Developers, architects, builders, and renovation specialists have the opportunity to innovate by meeting the needs of the burgeoning baby boomer market with smart home technology. Healthcare providers have the potential to improve the experience of their customers by introducing smart technology such as that available from Feros Care or eHomeCare.

Whilst technology does not replace human contact or reduce loneliness, it can contribute to providing individuals, carers, family, and loved ones with a sense of safety, security, and connection. With health and aged care costs predicted to balloon over the next couple of decades as the population ages, technology, is realistically, a practical part of the solution to reduce those costs.

Given that …

  1. Australia’s population is ageing – already one-third of us are over 50 years old.
  2. The majority of people want to age in their own homes.
  3. Attitudes of older people towards technology are not as stereotypes suggest. They’re surprisingly open to using technology. 

… what assumptions is your organisation making about the ability of older people to utilise and engage with technology? How can you establish a competitive difference or obtain growth by better understanding your current and potential customers?

If you would like to explore these questions and consider how your organisation might deliver products, services, or a better customer experience for the over 50’s, contact us.

Photo by Kevin Bhagat on Unsplash