Following this, advisers should encourage clients to schedule meetings, within which their existing retirement strategy can be reviewed and, if necessary, updated. This should involve not only a review of clients’ investment or pension performance, but analysis of any potential changes to their financial situation – after all, this will inevitably impact their risk appetite.
Following this, advisers will be able to make the appropriate recommendations for their client’s retirement strategy, to ensure their money is working as hard as possible, with the appropriate levels of risk.
Of course, advisers are not just responsible for the immediate care of clients’ retirement strategies. They should also be responsible for the long-term care of their clients.
For example, advisers could commit to sending clients quarterly market reviews, commenting on various fluctuations and what they might mean for investors. In doing so, they ensure individuals have access to all the information necessary to better understand the market.
And a more informed client base will consequently be less likely to make panicked decision should any economic changes present themselves.
Further, advisers would be wise to send clients annual reminders to review their retirement strategy. In doing so, clients will be encouraged to engage more in their pension investments, track their progress, and adjust their strategy accordingly.
That said, the above tends to only apply once clients approach advisers themselves. Unfortunately, a number of individuals – affluent or otherwise – are yet to seek help from an IFA or wealth manager. Consequently, they risk making ill-informed decisions about their retirement finances and causing irreversible damage.
As such, it is the responsibility of advisers, as well as the wider financial services industry, to improve access to advice.
This could be done in numerous ways:
- Better promotion of the various advantages of advice via informative campaigns.
- Helping Britons understand the various protections that come with seeking financial advice, as well as the benefits and affordability of such expertise.
- Making Britons aware of exactly where they can go to find advisers – pointing them in the direction of the Financial Conduct Authority’s register, for example, would be a strong step.
Of course, this is not the responsibility of advisers alone. Third parties such as the FCA, Pension Wise, and even the Department of Work and Pensions are all responsible for ensuring that Britons have the tools at their disposal to improve their retirement outcome.
As such, I urge these parties to engage with advisers and work with them to improve Britons’ access to financial advice.
Individuals have been exposed to a great deal of economic turmoil throughout the previous two years. And as such, many are feeling understandably unnerved and are keen to go to great lengths to protect their retirement savings and investments.
However, such panic increases the risk of making irrational, reactive financial decisions, without the help of an IFA.
