3 easy ways your over-55 clients could reap value from financial advice

As they move through their late career years and into the early retirement phase, your clients are likely to experience many changes to their financial situation.

Between being in their peak earning years before they retire, to taking their pension, to managing a retirement income, there’s so much to consider for over-55s. Yet according to new findings reported by Professional Adviser, over-55s are the most likely to shun financial advice due to the cost barrier.

Crucially, over-55s are exactly the demographic who can benefit from financial advice; seeking help from a professional in the decade leading up to retirement can help put them in a better position for the future.

While there are fees involved in working with a qualified financial planner, your clients could reap significant long-term value from making this move.

Read on to find out three easy ways your over-55 clients could gain value from professional financial advice.

1. Financial advice could help put your clients’ investments on a lucrative path

Whether your clients already have a substantial investment portfolio, or are reluctant to invest due to worries about risk, financial advice can provide an enormous amount of reassurance and value.

In the first instance, in which you have a client who already has a large amount of invested wealth, a financial planner can:

• Sit down with your client to discuss their long-term goals
• Look at their existing portfolio, its performance over the years, and identify any discrepancies between their current strategy and their end goal
• Perform research and due diligence on their existing investments and any new ones they wish to pursue
• Create a strategy that suits your client’s attitude to risk and life goals.

Alternatively, if your client is new to investing, speaking with a financial planner can be invaluable. Here, we can:

• Listen to the milestones your client wishes to reach in the coming years
• Explain how creating an investment portfolio can help grow their wealth over the long term, potentially protecting it from inflation and creating a foundation to draw upon later
• Help set up an initial portfolio, and offer regular reviews
• Provide peace of mind to first-time investors.

Of course, your clients are free to invest without obtaining any advice. Yet with the bespoke services of an experienced planner who knows the markets, your over-55 clients could push their wealth to the next level at this key point in their lives, and gain peace of mind that their actions align with their life goals.

2. Professional advice can make your clients’ wealth more tax-efficient

One of the key reasons over-55s could benefit hugely from financial advice is that a planner could help find more tax-efficient pathways for their money.

On approaching and reaching retirement age, your clients are likely to experience a sea change in where their money comes from, how they manage it, and the tax they will pay.

For instance, if your client is employed, they are likely to pay Income Tax through their employer, and may only have one source of income.

But when this individual retires, they may suddenly have multiple income streams, including:

• The State Pension
• A defined benefit (DB) or “final salary” pension from a previous employer
• Withdrawals from their defined contribution (DC) pension pot
• Liquidated capital from investments
• Any inheritance they may receive.

Taking the above sources of income alone, your client will likely be liable for:

• Income Tax, potentially paid on State Pension, DB, and DC fund income
• Capital Gains Tax (CGT) through selling investments
• Inheritance Tax (IHT), potentially due when a benefactor passes away.

So, when your clients retire, there are multiple reasons that they may need help making sense of their tax situation – and, beyond figuring out what they owe, there could be ways to lessen this bill too.

It’s important to note that time is of the essence: if your clients are set to retire in the next decade, now is the time they could reap significant value from financial planning.

3. A planner could boost your clients’ financial confidence

A survey published by MoneyAge found over-50s would trust Martin Lewis over a financial adviser when seeking advice on their finances.

Indeed, of the 2,000 participants of people aged between 50 and 90 years old, 30% cited Martin Lewis as the top person they would trust with their finances. In contrast, only 22% said they’d go to a financial adviser first.

Of course, seeing a trusted figure on television means your clients might lean towards a famous face rather than an unknown source of advice. However, while general advice has some merit, there is no
“one size fits all” financial plan that works for everyone.

In fact, bespoke financial advice could be the ultimate confidence-booster your clients need, enabling them to pursue wealth opportunities equipped with the knowledge they require.

Unlike online advisers, we can:

• Sit down with your client and talk about their unique dreams and goals
• Meet them where they are in terms of knowledge, attitude to risk, age, wealth status, and circumstances
• Offer a bespoke review of their investments, pensions, properties, earnings, inheritance, and any other aspect of their finances
• Work with your clients over the long term, forging a strong working relationship that lasts.

This longstanding relationship can boost your client’s confidence over the years, enabling them to take back control over their financial situation, and, potentially, add value to their personal wealth in the process.

Unlike many other advisers, we are proud to say we do not require our clients to have a minimum amount in assets before they join us. So, whatever stage of life your clients are in, we can help.

Get in touch

We’re here to advise you and your clients on all aspects of financial planning. If you have clients that would benefit from advice, or you’re interested in how you can work more closely with us, please get in touch. Email enquiries@prosserknowles.co.uk or call 01905 619 100.

Please note

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.