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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!

2 benefits of a big, hairy a** goal as we age

Goals have a significant impact on what we do each day, how we live, and how we feel about ourselves. They can be both motivating and disheartening. Motivating when we achieve the goal we set. Disheartening when we under-achieve or miss the goal altogether. Without goals we can become rudderless and life can lack real purpose and meaning.

What’s this got to do with becoming older?

The importance of goals

When thinking or planning for later life, setting goals is as important as our younger years when we often set goals associated with things such as sport, career, or money. Whilst establishing financial goals is important, money alone does not buy happiness.  Ease, comfort, and security perhaps.  But not happiness.  Goals about other aspects of our life give us something to get up for each day – to work towards so that there’s a sense of achievement in our lives.

As I’ve said previously, it would serve us all well if we eliminated the word ‘retirement’ from our vocabulary. Whilst most people do want to stop working at some point, setting ambitious personal goals to coincide with the event is not usually built into people’s thinking.

Crashing age stereotypes

Recently, I had the good fortune to meet a vibrant, active 65 year old woman, Astrid, who had walked the infamous Camino track – a walk of 780km from St Jean Pied de Port in the French Pyrenees to the stunning cathedral of Santiago de Compostela in Spain.  The walk takes up to 5 weeks. Astrid shared how many people were either surprised she’d done it, or considered her “too old” to be embarking on such an adventure.

Clearly, age stereotypes and ageism contributed to people’s perceptions of what’s OK and what’s not OK for someone with grey hair and some wrinkles.

There’s more to this story.

Astrid, had a big goal with a plan.

First, she had to wait a year so that her foot surgery and hip injury could heal. Then Astrid worked with a trainer 3 times a week to align her body and strengthen her legs. She joined Weight Watchers to lose 15 pounds to reduce the load on her joints and made a deliberate decision to only carry a day pack for the duration of the walk.  Her heavier luggage was transported to her accommodation each day. And, throughout the walk, Astrid chose the road less travelled in order to enjoy the quieter paths and nature.

Astrid chose a big, hairy a** goal (BHAG).

Benefits of goals as we age

The benefits of a BHAG are twofold:

  1. Ambitious and less ambitious goals contribute to a more active and healthier life. Without them we risk falling into the trap of building our lives around meal times, coffee & cake breaks, TV viewing, holidays, and medical appointments.
  2. By setting goals that are challenging we defy ageism and age stereotypes. Attitudes and beliefs about what older people can or should do are outdated. Longer lifespans require us all to re-think what we do with our lives and be more ambitious and confident about what we can do in our later years.

SMART goals

These are the 5 keys to goal setting.  Make sure your goals are:

Specific: We’ve all heard of the bucket list. It’s a list of the things we want to do before we die. Interestingly, it’s become so much a part of our vernacular, even younger people talk about their bucket list! Goals can be a bucket list. However, the goals for living will influence what we do in our daily lives.  Whether that’s learning to fly a glider or volunteering. If volunteering is a goal, what type of organisation would you seek to work with? One associated with children, the environment, mental health, older people, the homeless, or refugees? The options are endless. Check that your goals match your current interests or are associated with an area you’d like to know more about.

Measurable: Ensure that you have a sense of achievement by putting measurable goals in place.  Simply thinking, ‘I’m going to volunteer’ is noble.  However, you may want to establish a goal of volunteering for a certain number of hours or days per week.  Alternatively, you may choose to work as a volunteer to raise money for a charity. Set a goal of how much money you’ll raise. When you’ve achieved the goal … reward yourself.

Achievable: Ambitious goals are great. And, they may take time to achieve. So, break the BHAG into smaller goals. Imagine trying to eat an elephant. The only way to successfully do that would be to eat it one bite at a time. Big BHAG’s are the same. One step at a time.

Realistic: Ensuring the goal is something that you can actually do is essential. Whilst you may have dreamt of flying to the moon, becoming an astronaut is probably unrealistic.  However, parachuting may not be. Going back to University may be something you’d like to do, however fees may make it prohibitive.  Look for a course via a free MOOC (massive online open community) or attend University of the Third Age instead.

Timely: Set a timeframe for taking action and then completion. All talk, no action leads to a lack of fulfilment and a sense of failure. The action may be as simple as researching which volunteer organisation you’d like to work with. When will you do this? By what date will you have made your decision? Then, when will you fill in the application or call to get on their list? When will you follow up? If not successful, which charity was #2 on your list? When will you fill in that application? And so on. Importantly, be realistic with setting timelines and deadlines.  Don’t make them too short, nor too long. Diarise the actions, or write a list and tick each item off once done. Each tick is another step towards achieving your goal. Another bite of the elephant.

Goal ideas

Ambitious goals might be:

  • Climbing to Everest base camp;
  • Hiking the Kokoda Track;
  • Sailing around the world;
  • Learning a new language;
  • Studying again.

Less ambitious goals, but equally valuable, could be as simple as:

  • Volunteering a certain number of days or hours per week;
  • Participating in a community-based activity such as walking or a cycling group;
  • Taking up a past hobby or interest such as a musical instrument or painting;
  • Ensuring that some time is spent with younger people each week/fortnight/month in order to benefit from the youthful energy and enthusiasm that those younger than us bring to a conversation and relationship.

By building on current interests, or exploring new activities, we expand our friendships, bring purpose and meaning into our lives, and increase our chances of a happier, healthier life – right up until the end. And surely, that can only be a good thing.

What are your BHAG’s?

 

Photo by Gautam Arora on Unsplash

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