It is an understatement to say that life will probably not be the same again and we will have to change our behaviour if we want to stay safe and well. However, I think there will some positive changes to way in which we will advise our clients in the future: These include: .
Is it a good time to purchase an annuity?
“Is now a good time to purchase an annuity”?
The thinking was that now fund values have increased since the March 2020 crash it might make sense for some people, especially those with relatively small drawdown pots, to purchase an annuity.
I understand from several annuity providers that annuity sales have increased significantly so it will be helpful to see if there is a case for purchasing annuities at the moment.
Engage with advice
I want to help people make the right decisions at retirement but it seems many people don’t want to help themselves by properly engaging with advisers.
In the old days (whenever that was), people were more open to taking advice and more trusting of experts but nowadays many people have a closed mind to advice and don’t necessarily trust advisers. This has not happened overnight but has crept us on us over the years, but the lack of engagement has been accelerated by events such as RDR which created the so-called advice gap and by changing attitudes and customer behaviour.
The big picture – There is an advice gap and some people think the answer is robo advice
What's the problem? – Just like the exams, robo advice relies on algorithms but these can disadvantage those who are less well off
What can de done? – Looks at ways to get real people involved with the advice process.
This is Money Emergency
Brilliant article in This is Money by Tanya Jefferies
Fifty financial advisers team up to offer free half-hour sessions to over-50s with money troubles in coronavirus crisis
Wills and LPAs
I was listening to Michael Buerk on the Moral Maze which had the very apt title “Danger and Opportunity?”
In the introduction Michael said words to the effect that “many of us are banged up at home writing our wills according to the law Society which is struggling to keep up with demand”
I once had a client who said: “Give me a one-handed adviser”. He went on to explain that I kept on saying ‘on the one hand this and other hand that’, but he just wanted the answer.
I understood his frustration but as soon as I explained there was not one right answer and it was important to consider both sides of the argument he was happy with my two-handed approach.
Advice in the workplace
When presenting to trustees I always know when I have got their attention because I get a strange look when I ask; “Do you want your members to a second-class service”?
I go on to explain that if people contact me for help as they approach retirment because they may have seen my name in the papers on heard me on the radio ask one of the team will give them a personal service. This involves explaining all of their options and an offer to tailor our advice to their individual circumstances.