It always strikes me as odd when advisers say later life advice isn't for them as there must be very few advisers who don't offer this advice to the over 50s. One of the most enjoyable parts the adviser role is helping clients think about their future aspirations. However, the conversation will be quite different for our 45-year-old clients compared to our 75-year-old ones.
The Financial Conduct Authority (FCA) Consumer Duty focusses on financial services that aren't always working well for everyone. The regulator is looking for firms to 'step up' and put clients at the heart of their businesses by ensuring sales and advice processes don't result in more harm than good. It's no longer possible to ignore the fact that having a good advice experience will result in better outcomes.
Firms need tangible examples of how they understand this, such as how information is presented to older clients, taking into account their behavioural biases, as well as demonstrating adaptions to help meet older and potentially vulnerable customer's needs.
SOLLA understands the practical changes needed and the business benefits of doing them. Setting out clearly what a later life advice proposition should be helps identify any shortcomings and highlights opportunities for improving conversations. Developing advice skills and capabilities are key and a large part of the training SOLLA offers.
The family home is central to an overall later life plan but, too often, opportunities around using that asset as an income source in later life can be overlooked. Confidently discussing the need for a valid will and lasting power of attorney is an opportunity to have contact with wider family members and other professionals. All clients need the right protections and contingencies in place should they need assistance with their finances or care needs in the future, and this should be a central aspect of any advice offering.
With longevity comes care needs, so it shouldn't be a surprise when this is raised during fact finding exercises and regular reviews with clients, exploring areas such as:
A Referral Proposition for Consideration
- Is it important for you to stay in your own home in later life?
- Have you thought about what support you or a loved one might need?
- What do you know about the different types of care or being a carer for a loved one?
- What are your plans about leaving a legacy?
What happens to our clients after 60 is not just down to ageing but also the choices they make, so helping clients to make good financial choices is essential.
SOLLA advice standards are recognised tangible evidence that an adviser has gone the extra mile to make the client experience and advice outcomes the best they can be, which is something all good advisers want to do.
For more information on SOLLA and SOLLA advice standards for later life lending visit:
