By Dave Chessell, Commerical Director
With the dust settling on the RDR and the changes it’s brought to the industry, it’s no surprise that the FSA has reported there are 20 per cent fewer advisers operating now than at the end of 2012.
Yet for those advisers who had the foresight, and the stamina, to adapt their businesses to cope with the challenges of the RDR, the fact there are fewer advisers in the market is good news. It means less competition and more opportunities to attract the prized ‘Baby Boomer’ 50 to 68 year olds and their pots of good fortune in terms of property, pensions and personal wealth.
But while a focus on this group is undoubtedly essential for adviser success today, canny advisers are already looking beyond this group and developing strategies that attract younger clients. They’re doing this because they recognise that the Baby Boomer generation is already entering retirement and retired clients need far less professional advice than those still growing their finances.
Failing to act now to attract younger clients – who we estimate have a good chance of inheriting in excess of £4 trillion from their Baby Boomer parents – could lead to terminal decline in business. In other words, you could find your business retires before you do.
Identifying the demographics of your existing clients and acting to ensure you continue to attract a new generation is a topic we’ve tackled in our new paper, The X Factor and Why You Need It.
For those advisers who see the post-RDR world as an opportunity, with fewer competitors and access to software that removes many of the headaches that increased regulation has created, establishing contact with Generation X is something that needs to happen sooner rather than later.