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Forgive me for using the word “older.” It’s certainly not meant to offend anyone. Alright, let’s get down to business.
It’s not a stretch to say that many advisors already count a fair amount of “seasoned” people among their clients. In fact, it’s probably accurate to say the majority of clients at many advisory firms fit the bill as upper middle age and beyond.
That makes sense. After all, broadly speaking, folks that have been working for longer periods of time are likely to have more investable assets than those with less experience under their belts. Speaking of experience, life’s lessons often highlight the value of professional financial advice. Plus, as we age, our financial needs and objectives change. Whether it’s estate planning, retirement planning, long-term care or other issues, there are myriad reasons for older people to consider working with advisors.
Advisors know all of the above, but what may come as a surprise to some is that there is still ample room to court and bring more life veterans into the fold.
Consider the Data
A recent AARP survey, depending upon how one views it, contains data that are perhaps surprising, concerning and indicative of opportunity. The research indicates 38% of those 50-plus are already working with advisors and 29% of those that are not expect to do so within the next five years.
It’d be reasonable to expect that those percentages would be higher for that age group, but the other side of that coin is that there’s plenty of green space for advisors to cater to older prospects. Additionally, some of the reasons why those percentages are low amount to myths or preconceived notions that can be refuted.
“Among those who have never used a financial professional to help plan for retirement, the most common barriers are: prefer to handle it myself (41%); don’t have much retirement savings (35%); don’t think I can afford a financial professional (30%); and don’t know if I can trust financial professionals (20%),” according to the AARP.
Obviously, being argumentative with prospects isn’t a winning strategy, but advisors have some compelling fundamental points on their side when it comes to potentially converting doubters.
“Of those who have either already used a financial professional for retirement planning or expect to use one, roughly nine in ten (89%) say that they expect professional financial advice to be in their best interest, and a similarly large share (87%) say that they use professional financial advice to make important financial decisions,” adds AARP.
Best Interests Matter
It should go without saying that advisors need to have their clients’ best interests at heart. By not doing so, it’s a surefire way to lose clients and chase prospects out the door.
Add to that, and this should be intuitive as well, older folks will be quick to realize if an advisor isn’t prioritizing their best interests.
“Nine in ten (90%) adults ages 50-plus agree that, when giving investment advice to people with retirement savings accounts, financial professionals should be required to give advice in the best interest of the account holders,” concludes AARP. “In fact, two-thirds (66%) of adults ages 50-plus say that they would be less likely to vote for their member of Congress if they were to overturn a rule requiring financial professionals to provide advice in the best interest of their clients.”
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