Life expectancy calculator
A useful tool t help find out your clients average life expectancy, so that you can help plan their future and retirement option.
Spotlight on: Financially Mature and Stress Free
Learning objectives for structured CPD:
Welcome to the first chapter in this eBook series. Each chapter will uncover what each new retirement journey means or advisers. Find out how you can use these insights to help grow your business and build more profitable client relationships
- In-depth understanding of future retirement journeys.
- Knowledge of how journeys impact client ability to plan and pay for retirement.
- Understanding of the future opportunities to engage with and support these consumers.
Please note that you will not receive a CPD certificate for the completion of this learning. A reflection statement will be available for you to complete and save for your records at the end of the eBook.
About the research
The Changing Shape of Retirement research looked at how trends may be changing the way people retire. Key drivers are the change in societal and cultural norms that are shifting the way we live our life. This has created five new retirement journeys that all have different financial and emotional needs.
The Changing Shape of Retirement research1 looked at how social, cultural and economic trends are combining to change retirement journeys and shape how we spend later life. Although traditional target markets haven’t necessarily changed, modern life has, which is creating different opportunities for advisers.
The research highlighted five new retirement journeys that all have different financial and emotional needs which are;
Present and future
The Financially Mature and Stress Free segment currently accounts for a fifth of those over 60 and 80% of most adviser’s clients. The research1 predicts the size of this group will decrease over the next 15 years as defined benefit pensions tail off and home ownership either shrinks or becomes delayed.
Rethinking Financially Mature and Stress Free
Advisers will already be very familiar with this segment and understand the needs and retirement goals. But things are changing for this group. A third of those in their 60s and 70s who were in this group a decade ago are now in their 80s.
This graph shows the trajectory for each of these groups from 2010 to 2035:
Source: Research for Canada Life was conducted in partnership with Trajectory, a strategic futures consultancy. It uses horizon scanning to identify the key trends shaping retirement now and in the future (to 2035), to identify a series of new models of retirement or journeys through later life.
Segmenting your client base
The Financially Mature group has been at the forefront of changing the meaning of age in society. They have extended the period between finishing full time work and declining health. Wealth and health are at comfortable levels which they have built up over a lifetime of successful employment. Income levels remain still high and many in this group are married or single, with one or no children and own their own property with perhaps a second.
What are their financial needs?
Protecting wealth has become a common client objective for this group. For many years wealth has peaked in the mid-fifties and mid-sixties. This peak is nearly £100K higher today than it was for 55-64 year olds, ten years ago (1) .
A culmination of strong pensions wealth but also an increase in part-time working and no compulsory retirement from work, means over the last twenty years retirement income has been rising to the extent the income of those aged 70-75 is just 10% lower than the average UK income (1) .
The shift for these group now concerns being more financially aware and more interest in passing their legacy to their families in the most tax efficient manner. This includes ensuring that they use available gift allowances, maximising pension contributions while still working and utilising trust planning.
1 Source: Research for Canada Life was conducted in partnership with Trajectory, a strategic futures consultancy. It uses horizon scanning to identify the key trends shaping retirement now and in the future (to 2035), to identify a series of new models of retirement or journeys through later life.
How do they spend their time?
This group have more leisure time and are mentally and physically in good health. The majority no longer need to work but may still be doing part-time freelance or consultancy work or thinking about how to step back from their own business.
Adviser tools
These online tools are free to use and designed to enhance client engagement
The budget planner
This online tool looks at your income and outgoings to help your clients understand and manage their budget.
Customer support
Find answers to commonly asked questions, helpful links, tools and contact details.