Helping clients navigate these different phases and manage their finances while maintaining a good quality of life poses a serious challenge for advisers. Each client’s multi-stage life is likely to look very different, so will require a far more personalised approach to advice and risk than we see in a traditional retirement advice journey.
Technology will play a crucial role in delivering financial advice that meets client needs throughout a 100-year life. Already practice management software can combine financial information from different sources to create a complete picture of the client’s finances, as well as linking family members to make multi-generational planning easier. Virtual meeting technology makes it easier for clients to schedule meetings at times convenient to them, around work or other commitments. Cashflow planning tools help model a client’s wealth throughout their life and assess the likelihood of achieving their desired future to inform the required levels of saving and risk.
Looking forward, I can see artificial intelligence supporting human advisers, by providing data to inform the advice journey. Fitness trackers can already check our heart rate, encourage us to exercise and help us manage our weight. Wearable devices have the potential to go much further in monitoring our health, providing data to help prevent issues, provide early diagnoses, and better determine individual longevity.
Life expectancy is a key part of later life financial planning, but to deliver suitable advice in the future, advisers will need to consider the wider impact of increasing longevity across their client’s whole life. Using technology will be key to supporting long-term decision making, and ensuring clients continue to achieve their financial goals, no matter how long they live.