Meet Ray the Retiree

Ray is recently retired. While he doesn’t consider himself as tech-savvy, he owns a smartphone and enjoys keeping up with his children and grandkids on Facetime. Over his working life, Ray has accumulated various assets so preserving his wealth for his family is top of mind. How can advisers harness technology to engage retired clients like Ray?

 

The opportunity

People are living longer and Australia’s ageing population is rapidly increasing. In 2017, there were 3.8 million Australians aged over 65. By 2057, it is projected there will be 8.8 million (22% of the population). They are also one of the wealthiest segments in the population, accounting for 26% of the nation’s wealth.

 

 

What they want

For many retirees, financial advisers and accountants are much more than people who help them manage their finances. They’re trusted concierges who help them meet their everyday needs and fulfill their lifestyle goals. As a result, the assistance they provide goes beyond maximising net worth to include social and personal transitions, such as living arrangements and aged care planning.

Outliving their nest egg and costly health issues are real concerns for the over 65 cohort so budgeting and cashflow management are paramount, along with staying abreast of compliance requirements and tax changes.

 

How to help them:

 

1. Don’t underestimate their willingness to engage with technology

We live in a world where sharing personal details in exchange for a personalised service is almost second nature. We give Uber our live location to quickly hail a ride and allow Netflix access to our viewing history so it can suggest new TV series we might enjoy. But younger generations aren’t the only ones taking advantage of the benefits technology has to offer.

There is a commonly-held belief that over 65s don’t engage with technology, but this stereotype is beginning to crumble. The biggest mobile usage growth in 2017 came from older users, with a five point increase for 55-64 year olds and a nine point increase for 65-75 year olds.

Even ‘Digital Phobics’ or those that typically avoid using new technology are for the most part already using digital devices to stay connected with their friends, family and grandchildren. In fact, according to a 2015 study by the Pew Research Centre, the majority of seniors surveyed described smartphones as “freeing” and “connecting”.

 

2. Use visuals to demystify complex data

According to a 2018 study by FactSet, 59% of clients find it difficult to understand complex graphs and charts used by their wealth managers so communicating data in a meaningful way can be a challenge. The same study also found data visualisation can help to build trust with wealth investors and can be particularly powerful to engage older clients.

Data visualisation could take the form of a simplified chart showing projected investment income over time or a cashflow breakdown to help clients see how much they spend. User-centric data delivery helps advisers strike the balance between being comprehensive to demonstrate value and presenting information in a way that is easily understood. After all, a picture says a thousand words (or data points).

 

 

3. Personalise the digital experience  

If you only take away one thing from this series on how to engage with specific client personas it should be that personalisation is key – and retirees are no exception.

Particularly amongst older clients where digital literacy levels are likely to vary, segmenting clients beyond their personal financial situation to account for their attitudes towards technology can help advisers gain deeper insights and deliver a better, more personalised service.

While not all digital solutions will be suitable for everyone over 65, client facing technology enables advisers to deliver a more scalable service. With features ranging from live balance sheets to system generated wills and tailored Executor Kits, platforms like myprosperity can help advisers scale as they adapt the delivery of their services to meet the needs and tech adoption levels of their retiree clients.

Are your senior clients technophobes or technolovers? How are you adapting your services to meet their needs?