Four in five advisers ask retirement clients about happiness

The research, which surveyed 212 financial advisers, found advisers increasingly expected their role to extend into "retirement coaching" and become less focused on solely dealing with products and investments choices.

It found advisers ask clients as part of the fact find what gives their life meaning and purpose and have discussions around what will bring them happiness in retirement. 

Advisers said these discussions were a useful way of understanding a client’s hopes and fears in retirement and can be used to support their broader financial wellbeing.

Tim Morris, IFA at Russell & Co Financial Advisers said he did not see himself as a coach as he tended to work with clients who are good with money and had a clear retirement plan. 

“Many are business owners. I work with them to ensure they adequately fund these plans,” he said.

“However, I can understand why advisers are increasingly involved in their client’s longer term living standard, their health and long-term care needs.

“Due to increased life expectancy, access to healthcare and the popularity of pension drawdown; the adviser relationship for most clients will continue longer than it used to.”

The research was conducted with Next Wealth in December 2020 and called Managing Lifetime Wealth: retirement planning in the UK 2021 Report. 

It highlighted how many firms were already concentrating on understanding client wider life needs and providing more holistic retirement support.

Steven Cameron, pensions director at Aegon, said: “While advisers remain focused on helping clients achieve their financial objectives, the research points to an increasing focus on broader financial wellbeing.

"Advisers are going beyond their valuable role in recommending products and investments to optimise portfolios, towards a more holistic approach that offers coaching on life after work.

“Through open discussions during the fact find, advisers can gather a fuller picture of a client’s wider life goals and priorities to help finance aspirations and mitigate fears in retirement. 

“Clients not only benefit from advice to support their financial future but also have someone to help them identify what gives them joy and purpose and picture their ‘future self’.”

Clients' hopes and fears

The research also asked advisers about what some of the biggest hopes and fears are for clients in retirement.

Four in 10 (39 per cent) advisers said the hope for the majority of their clients was to have the ability to maintain living standards in retirement and 43 per cent said it was some of their clients.

Nearly all advisers surveyed said their clients are concerned about their health or that of loved ones. Alongside this are fears around the ability to pay for potential long-term care costs in later life.

Cameron said: “The research highlights that the aspiration to maintain living standards in retirement is the primary objective for the majority of advised clients. To truly deliver on this, people often need help from their adviser to picture their future lives. 

“To make this goal attainable, individuals should look for ways to plan well ahead to ensure they are on track and have the best investment approach to meet this objective.”

Tom Morris, director and chartered financial planner at Ovation Finance described the results of this survey as “very heartening”. 

“Being able to find things that give us meaning, a sense of purpose and happiness in general, goes a long way to helping us live fulfilled lives,” he said.

“Working out what this is doesn’t necessarily come easily for some and is where an adviser with good questioning and listening skills can be a huge help. Coupled with the technical skills we have; you can then create a meaningful financial plan that enables a client to live a fulfilled life, as well as providing crucial reassurance along the way.

“If there is still some difficulty in finding the answers, research suggests that a good starting point is thinking about areas such as improving our social interactions, with friends and family for example, as well as getting involved with the local community in some way.”  

sonia.rach@ft.com

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