Spotlight on: Financially Mature and Stress Free

Most advisers will be familiar with this group as it represents the majority of their client base. This group has very comfortable levels of wealth which has accumulated over their life with incomes around 30% higher than average. Many may retire early.

Yes. The research clearly shows this. This is due partly to the reduction in membership of defined benefit pensions and the trend towards delayed home ownership.

This group will often have complex needs around inheritance tax planning. They are a group who will be keen to protect their wealth and cascade it as tax-efficiently as possible.

Reducing Tax

Putting assets in trusts, paying into a pension rather than a savings account and gifting are some ways this can be achieved.

Defined pensions

Another factor to consider is the shift from defined benefit to defined contribution pensions. Currently the largest source of income among the richest retired people is defined pensions (35% for couples and 42% for single people)

Gifting wealth

The pandemic may have changed how wealth is gifted and many of this group may want to help children or stepchildren on the step ladder whilst they are still alive.

Technology

Most, over 50s now use more than four devices regularly, so advisers need to adapt to this greater use of technology and understand how technology can enhance client interactions, grow their business and drive stronger relationships. Video meetings are here to stay along with video calls and virtual events. All of these are a great way to engage clients who previously might not have used this type of technology