Expert: Lesley Whyte, Head of Strategic Partnerships, Standard Life UK
Headlines:
- The importance of understanding each client's individual objectives, priorities, and risk tolerance when planning for retirement
- Realistic expectations regarding income levels, spending patterns, and potential market volatility need to be set
- Managing clients with unrealistic expectations and negotiating with them is challenging
- When it comes to attracting younger generations to the industry, the industry needs to adapt to emerging technologies like cryptocurrencies as well as leverage social media platforms like TikTok and adapting communication styles that will resonate with them
Context:
Delegates discussed the use of cash flow modeling tools in retirement planning, sharing their preferences for different software solutions, such as CashCalc and Truth, and the pros and cons of each.
The benefits of using these tools for client engagement, visualizing projections, and facilitating conversations about future scenarios were highlighted, while the limitations of these tools and the need for proper processes and assumptions were acknowledged.
The potential impact of regulatory changes, such as the Consumer Duty and the Retirement Income Advice Review, on processes and client conversations was also discussed, including how to adapt their practices to comply with new guidelines and demonstrate suitability as well as the implications of a potential change in government and its impact on pension regulations, including the Lifetime Allowance (LTA) and tax-free cash.
The conversation touched on the challenges of providing affordable advice to clients with smaller asset sizes. Delegates shared their experiences in segmenting clients based on their needs and offering different service levels or fee structures, while the possibility of revisiting commission-based models as a potential solution to address the advice gap and make advice more accessible to a broader range of clients was also explored.
Key takeaways:
- Explore strategies to engage and educate younger generations about retirement planning, such as leveraging social media platforms like TikTok and addressing their familiarity with emerging technologies like cryptocurrencies
- Review and adapt processes and client conversations to comply with regulatory changes, such as the Consumer Duty and the Retirement Income Advice Review
- Evaluate the potential impact of a change in government on pension regulations, including the Lifetime Allowance (LTA) and tax-free cash, and prepare for potential adjustments in advice and planning
- Assess the feasibility of offering different service levels or fee structures to provide affordable advice to clients with smaller asset sizes
- Consider the potential benefits and drawbacks of revisiting commission-based models as a solution to address the advice gap and make advice more accessible
