Keith Churchouse: Two weeks of stark contrast… but some things rarely change

In preparation for publication, I had originally written an article on vulnerability, the normal life processes of the end of the tax year and the festival of spring and Easter.

With the ever-evolving significance of the deadly global Covid-19 disease, perspectives have vastly changed over the course of a two week period, placing certain aspects of our lives into focus, with some no longer important, and some aspects we take for granted moving front and centre.

The Budget, eloquently delivered, is now superseded. Equity markets have fallen sharply, and the real advantages of diverse asset allocations have been laid bare. The end of the tax year and the start of the new tax year will still occur, but perhaps with muted enthusiasm as advisers and financial planners tidy up the end of the tax year for their clients and look forward to 2020/21.

Community cohesion

Some aspects of people's lives will not change, indeed are thought of more in times of crisis, and vulnerability is one of these. It is greatly heartening that many local communities are offering help to those less fortunate or able at this time, and I hope when this global disease is under control, that this will continue. Be under no doubt that peoples view of life will change after this experience.

Vulnerability can evolve for many reasons, and it may manifest itself in varying ways, which may not at first be obvious, being no respecter of age, gender or race. Living alone in itself is not an example of vulnerability, but the statistics below make interesting reading.

The Office for National Statistics (ONS) Cost of Living Alone report 04 April 2019 confirms: "The number of people living on their own went up by 16% to 7.7 million between 1997 and 2017, while the UK population increased by only 13%. By 2039, the number of one-person households is projected to rise to 10.7 million.

"The rise in the number of people living alone is largely concentrated in older age groups. While the number of people aged 25 to 44 living alone has fallen by 16% between 1997 and 2017, the number of 45- to 64-year-olds living on their own has increased by 53% over the same period.

"This increase is partly due to the large number of children born in the 1960s reaching this age but may also be down to a change in our relationships: more people in this age group are divorced or single than there were 15 years ago."

‘Thief in the night'

Financial planning for a client's changing needs is always an evolution, and time can also be a thief in the night in making a once able, lucid and capable individual vulnerable. We have worked with hundreds of individual clients for over a decade and it can be challenging to spot the signs that the client you welcomed all those years ago has moved to a different point in their lives where their vulnerability may become apparent. Caring for their changed and often evolving needs is paramount.

Change is one of the only certain things in life, and this could not be starker than the last few weeks. We can lookout for the more tangible issues, such as having up to date Wills and Powers of Attorney in place. But this can go further.

Do trusted family or friends know where these documents are held? Do we as advisers have their contact details (with their permission), and they ours? Should they attend any client meetings and are all discussions documented?

Taking steps to ensure the correct service to a client who is vulnerable is vital and a good place to start within a business is to have a client vulnerability programme and process to ensure that clients are cared for correctly.

None of us knows how our health and mental wellbeing will evolve in the future. We can take steps to be fitter, healthier and take good medical advice. However, life now seems a lot more fragile than it once was.

Whatever you do, stay safe and where possible, help others less able. We need each other more than ever from now on.

Keith Churchouse is partner and Chartered financial planner at Chapters Financial

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