This is all a major concern and forces many to make purely emotional decisions at a time when they are vulnerable, rather than informed decisions about the future.
From experience, we know that this vulnerability, for some, will see them become easy targets for scammers or industry ‘bad actors’ guaranteeing higher investment returns, more income and greater access to lump sums.
All of this, especially the increased level of vulnerability, means there is a greater need for financial advice than ever before – and it needs to be properly delivered, tailored, appropriate financial advice, which properly represents client interests.
How do we do this? By reducing the barriers to talking to us and building trust and empathy, and showing we understand and that we care is a foundation for that trust. Clear communication, authenticity and rapport are also essential in this regard too.
Workers and retirees need help, more than ever before, to make informed decisions.
We should also be prepared for people we are advising to be upset, angry and/or irrational as the reality they face could be extremely daunting and confusing. Arguably, this is perhaps when we are needed most and will take skill, time and discipline on our part.
Once we have established this trust, from there we have to build on life-stage advice strategies to help the client successfully navigate these tricky and consequential decisions.
In this challenging economic and financial environment, workers and retirees need help, more than ever before, to make informed decisions.
When we get it right, our jobs can properly transform whole families’ financial futures for the better.
Simon Chrystal is chief executive of WPS Advisory
