From new attitudes to life, to how they approach investing, the wealth outlook is different for baby boomers, millennials and generation Z. Professional Adviser investigates how this may impact their retirement.
It is natural that with each generation, the meaning of retirement and how they live their later years changes.
A core challenge for advisers today is ensuring the gap between client's expectations of the income that can be generated from a given pension fund matches the reality. This is not an easy feat in a somewhat permanent low interest, low inflation, low growth world.
Notably there is a case to be made for ensuring assets are well-managed before pension assets, and that advisers engage with consumers early enough to influence the trajectory they are on, says Sean Christian, MD and executive director, wealth at Canada Life. In an interview for an exclusive guide on Remodelling Retirement, he notes products need to be increasingly flexible to support different generation's lifestyles, as well as the fact younger generations will live longer.
Despite retirement planning becoming an increasingly important part of the advice lifecycle, most advisers are yet to develop a centralised retirement approach in the same way as a Centralised Investment Proposition (CIP).
Yet having a clear strategy for different client segments means advisers can help both their clients and the firm mitigate risks that emerge as clients' age. This is all the more important now that we can see the different approach needed to help individuals require across the generations.
Click here to access your exclusive Remodelling Retirement guide, and learn more about Centralised Retirement Plans that can not only help deliver robust investment and withdrawal strategies for resilient and sustainable income, but also ensure clients use their available tax allowances as they phase into retirement.