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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!

Washed up jar of possibility with older workers

Are older workers considered washed up?

Few organisations have a strategic approach to managing their older workers. This issue persists despite research by Deloitte Access Economics that shows a 3 percent increase in the participation rate of workers over 55 could account for a $33 billion boost to Australia’s national economy.

The Challenge

Given the prevalence of age stereotypes in the workplace, there are some critical questions organisations need to ask:

  1. Do we understand the needs, hopes and aspirations of older workers?
  2. What are the attitudes and beliefs of younger workers towards ageing and older workers?
  3. What can we do to increase age diversity and meet the needs of all parties without negatively impacting the bottom line?

As Dr Rickwood suggests in her recent interview with Fran Kelly on Radio National, “HR policies and practices haven’t shifted to accommodate what is a burgeoning possibility in a workforce of older people”.

There are numerous examples of Australian companies that are already reaping the economic benefits of embracing an older workforce. The most well-known example being Bunnings Warehouse, which employs large numbers of older, highly-skilled tradespeople. No longer able to continue in physically demanding jobs, these people instead are offering a lifetime’s worth of expertise to Bunnings shoppers.

The Facts

According to the Age Discrimination Commissioner’s report ‘Willing to Work’, 12.7% of those aged 65 and over are in the labour force; however, this figure is expected to double by 2055.

Historically, we considered 60 or 65 to be the age at which we retired.  Or, for the financially savvy, we saw 55 years old to be “lucky”.

Unfortunately, this view of 65 as the age at which we retire largely remains. We dream of when the constraints of a workplace end, and travel and leisure beckon. However, increasingly, people are discovering that early retirement isn’t nearly as attractive as perceptions hold it to be. Indeed, many baby boomers see ‘retirement’ as a change of career.  It’s a time when they are able to enjoy more flexibility to pursue their passions and interests, whether paid or voluntary. For example, recent Australian of the Year, Graham Farquhar, revealed in an interview that he enjoyed being able to continue working in his area of expertise on an unpaid basis.  

According to research by MetLife (UK), 63% of over 50’s in their survey would consider re-training to stay working longer. There is also evidence to suggest that greater initiative is required by both older workers and businesses for training and re-skilling.

For example, organisations that invest in retention of their older, skilled workers are discovering higher organisational productivity. Similarly, it’s essential for all workers to continue to learn and educate themselves to remain relevant.

The Opportunity

Underpinning these burgeoning human resource issues is an absence of conversations with all staff – regardless of age – about their attitudes and beliefs towards ageing and remaining in the workforce beyond 50. It’s these conversations that can provide insights into how to create an open, all-age-friendly workplace environment and culture.

It is forecast that 85% of jobs in 2030 don’t yet exist. By the end of the next decade there is also a predicted shortage of workers. These two facts alone suggest that now is the time to reshape the workforce. Through their human resource policies, organisations have the opportunity to redesign work and jobs to promote flexibility. From phased or partial retirement, role transfers, blended work, bridge employment to intergenerational job sharing.

Ultimately, the Hon Dr Kay Patterson, Age Discrimination Commissioner, reminds us: “Intergenerational offices do a lot better than ones fixated on just one age group”.

Does your organisation have its finger on the pulse of the over 50’s in the office?

If you would like to better understand the over 50’s, contact us.

 

Photo by Andrew Bui on Unsplash

3 ideas for relevance in retirement

If you’ve heard the term “relevance deprivation” you may be older and possibly retired. Alternatively, you may be between jobs or a parent who has become an “empty nester”.  Regardless of your situation, remaining relevant is an individual responsibility.  And it can be challenging.

I’ve written before about my dislike of the word ‘retirement’. One of the many reasons for my preference to avoid the word is because it signals an endpoint. A time in our life when we’ll stop all the hard work and move to a life of leisure filled with choice. Our choice. Our way. No boss. Bliss!

What if …

We didn’t retire.  What if, instead of retiring we simply kept on living. Fully. Completely. Engaged.

Not thinking “I’m old” because old is equated with retirement.

What if, from a much younger age, we made choices and decisions knowing that life was long. Very long. Knowing that if we retire at 65 we’ll still live for 20 or more years.

What choices would we make? How differently would we live our life?

There’s work.  Then there’s retirement.

When working we remain relevant because we have purpose and meaning. There’s a reason to get up each day. At work people want us because of our knowledge, skill, or experience. We receive phone calls, emails, and invitations. Invitations to lunch. To Melbourne Cup events. To Christmas functions. Our birthday might be celebrated in the office with a cake. People notice when we’re away for an extended time and are usually grateful for our return. We’re valued. And all we have to do is show up to our workplace. Easy.

In retirement, this can all disappear. There is no office. The phone calls, emails, and invitations diminish. Whether or not we get up each day may not be noticed – by anyone.  Unless we’re in a relationship or we have adult children living with us. What happens in our day must be generated entirely by us. It requires energy, effort, and self-motivation. Less easy.

In a youth- focused culture, relevancy can feel even more challenging. Combined with an increasingly technology, digital driven world, becoming and remaining digital-savvy may also seem overwhelming.

Given this challenge, what are the options?

3 ideas for retirement relevance

In a recent podcast interview with SBS, I suggested that it was essential we all continue to learn and educate ourselves to remain relevant. Whilst the podcast was particularly focused on the disparities between millenials and older workers, those interviewed provided practical actions for reducing the gap. As I’ve said before, generational labelling was also suggested as divisive and not overly useful as a way of identifying groups of people.

Bridging a generational gap requires understanding and a willingness for both younger and older people to learn from each other. An openness and recognition that there is more than one way to do anything. And that attachment to “our way” or the “right way” limits the possibility for new ideas, innovation, and creativity.

Intergenerational relationships are crucial for us to age well. Consequently, building them into our lives is essential.

The 3 ideas?

  1. Continue learning. Whether that be through Open University, U3A, TAFE, University, free online MOOC’s, or by attending events at your local library. Foster a thirst for knowledge.
  2. Participate in community activities or hobbies where you’ll also meet and befriend younger people. Community gardens, bush regeneration, environmental or animal activist groups, book or film clubs. If there’s not one in your neighbourhood, create one.
  3. Be open. Say “yes”.

For inspiration on how to age we have role models in Judy Dench and Jane Goodall. One thing’s for sure. To remain relevant in retirement requires us to reject age stereotypes and embrace our whole life – from start to finish.

 

Photo by Benjamin Davies on Unsplash

 

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5 things worse then dying

5 things more scary than dying 

It’s reasonably well-known that many people fear public speaking more than they fear dying.  However, as we age, a number of other fears enter our consciousness beyond the sense of foreboding, dread, or denial that can occur as we age.

A bonus of ageing is that we commonly celebrate another decade passing.  Whether that celebration involve a party, an adventure, or a quiet dinner at home with a loved one or friends. We’ve lived another 10 years!  However, the celebrations are usually for the life we’ve lived, not the life before us.

Who celebrates a 50th, 60th, 70th or 80th birthday because of what they’ve experienced and because of your enthusiasm for the next decade? Compare this feeling to the experience of celebrating an 18th or 21st.  Generally, these birthdays are celebrated as a milestone because they represent a turning point in our life.  A time when we can look forward to new and exciting experiences and adventures.  What can we possibly look forward to in our 50’s, 60’s, 70’s, 80’s and beyond?  Isn’t this a time when “it’s all downhill from here”?

No.

Well, it doesn’t have to be.

As this well known quote so succinctly states

“If it’s going to be.  It’s up to me.”   

With lifespans longer than at any other time in history, it’s time to re-think how we look forward to, think, and plan for our later years.

5 things scarier than dying

In a recent survey of baby boomers conducted by Three Sisters Group, we discovered that this age group found these 5 things more scary than dying:

1. Physical and/or cognitive decline

2. Nursing homes

3. Retirement villages

4. Loneliness

5. Being like our parents

The question is:  If we’re afraid of these things, what are we doing about it?

The reality is, physical exercise combined with good diet and a healthy lifestyle (not smoking, low alcohol intake) are the two things most likely to make the biggest difference to our lives.  Furthermore, just these two ideas could influence whether or not a nursing home becomes a reality or simply an unfounded fear.

There’s so much to look forward to as we become older.  In fact, one study (1) has shown that our life satisfaction in our 60’s and beyond is equivalent to when we were teenagers!  As a friend shared with me, being physically active and not playing the age card are essential to enjoying our later life.  And Jane Goodall simply doesn’t think about ageing.

Of course planning everything in our life isn’t necessary either.  It’s really about our level of enthusiasm for what we’re doing and what might happen in the future.  I’ll never forget my grandmother telling me that she always carried her passport with her wherever she was in Australia just in case a friend called asking her if she’d like to go overseas with them.

And if you’re wondering … there was a time she spontaneously went on a cruise and asked her friend in Perth to pack her bag for her and she’d meet her in Sydney at the cruise ship (she was in Darwin) .  Unfortunately she did end up in a nursing home – despite her best efforts to live a very full life. At least she maximised her able years to the best of her ability.

 

Source:

(1) Qu, L., & de Vsus, D. (2015). Life satisfaction across life course transitions (Australian Family Trends No.8). Melbourne: Australian Insitute of Family Studies.

 

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How old is old?

“I don’t feel my age.”

Old isn’t a number.
Old is an attitude.
Old is more likely to be associated with physical or cognitive decline.

Discussions we’ve held with baby boomers reveals that people often feel ten or twenty years (or more) younger than their actual age! Often, old was either someone else, or someone older.

For example, one 60+ male said:

“I still feel the same as when I was 25, but physically I can’t do the same things.”

A female between 50-60 said:

“I don’t think I feel any different to when I was 40. “

Along with feeling younger than their actual age, baby boomers also expressed a sense of confidence. They associate this with an internal sense of knowing themselves better. Women, in particular, feel more confident and declare a sense of freedom with becoming older. This is generally a result of either being empty-nesters or their children being older and more independent. The days of nappies, dressing small children, and Mum as taxi-driver are often behind them.

It was also common for baby boomers to express frustration at being ignored or labeled as “old”. A recurring story from a number of people was associated with a frustration and irritation with news stories about people 60 years old (for example) being reported as either an ‘old person’ or ‘old people’.

 

Males vs Females

Men and women seem to have an awareness that there’s a need to reinvent their life as they age. Awareness that this includes a good diet, exercise, creation of personal relationships, and a need to be doing something beyond travel and relaxation is understood. What we noticed in our face-to-face discussions is that women often embraced this enthusiastically. Whilst men had the same awareness, they could be more confronted as they considered the transition from full-time work to something else. Women had experienced flexible lifestyles associated with being the primary carer in the family and had reinvented themselves throughout their lives. Also, women often had stronger social networks beyond the workplace. For many men, creating a life beyond and outside of a full-time job was a first time experience.

Regardless of gender, everyone that participated in the discussions found a sense of reassurance in the conversation. Sharing stories and views about their lived experience of ageing were viewed as positive, enlightening, and stimulating.

 

Key Lessons

The most important lesson is that ageing is all about attitude.

Three other lessons:

  • Talk about becoming older with friends – share your experiences. Be open and honest.
  • Enjoy the sense of confidence and freedom that comes with ageing.
  • Ignore stereotypes and defy the ageist attitudes often peddled in the media and online.

Of course, ageing also comes with its difficulties. Financial concerns, caring responsibilities, and physical or cognitive decline pose challenges. These will be discussed in the future. Stay tuned. And, if there were anything you’d particularly like to learn more about or understand, please let us know.

 

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Shades of white

White is white.

Until you try to choose white paint.

If you’ve ever tried to choose white paint you’ll know just how tricky it is to choose the shade of white you’d like to paint a room or a house.

Ageing is the same.  Here’s why.

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Innovating ageing. Together.

5 hours.

That’s how much our life expectancy increases every day.

Thus, our lifespans are longer today than at any other time in history. So what does this mean for us?

Innovating ageing. Together.

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2 reminders about ageing

“Age is just an abstraction not a straight-jacket.”

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What’s your Plan B?

In a perfect world I’d like to remain at home until the end of my life. Wanting this is one thing. Creating the environment in which this is possible is another. Can I really stay at home to the end? Planning is crucial.

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Intergenerational job sharing. Dreaming?

A recent report by PwC reveals that increasing employment rates of those over 55 years could add $78 billion to the Australian economy with 83% of this gain attributed to better employment of the 55-64 year olds. What are the implications of this?
Read more