Spotlight on: Late Financial Bloomers

This is a group that advisers will not be as familiar with. They are a group that come into wealth later in life and because of that may have less knowledge about what options are available to them. Many of them may have had late access to home ownership, marrying later in life or having children later.

They are also likely to have been more exposed to the after-effects of the global financial crash, the need to repay student debit and the ongoing increases in the UK house prices, meaning home ownership may not be a part of their wealth outlook in retirement. They may have to play catch-up as far as building wealth is concerned and they will have a much more compressed investment horizon. That may mean they are going to be working later in terms of retirement ages but they will need a different investment strategy compared to many other clients with very different financial needs.

No. The research shows this group is set to increase and will be the fastest growing group. Financial maturity is delayed as people do things much later in life – get married later, having children later, achieve home ownership later and take out a mortgage for longer and which they need to continue paying into traditional retirement years. All of this has an impact on retirement savings and tomorrows retirees from this group are likely to face greater financial strain.

This group is likely to feel like they are late to retirement planning and may have missed opportunities to future proof their wealth but that is not necessarily the case. There are areas and opportunities for advisers to add value. Some obvious areas would be maximising pension contributions, understanding inheritance tax implications, understanding equity release and getting suitable protection in place.