By their very nature, unprecedented events are rare. Yet their impact is often profound, bringing to the fore a once-in-a-generation lifestyle change that can turn industry norms on their head.
Take the coronavirus pandemic and retirement planning. According to survey of 10,000 people aged 50 or over by the Institute For Fiscal Studies (IFS), one in eight older workers have changed their retirement plans as a result of the coronavirus.
"Retirement planning often focuses on investment illustrations that observe a 4% or 5% rise every single year," says Andrew Tully, technical director at Canada Life. "That looks great on paper. It is not what happens. Covid-19 was the biggest example of what happens when market unknowns impact the world around us and retirement planning can change significantly as a result."
Even beyond the initial factor of older people having to reconsider their retirement plans, one of the pandemic's lesser-known effects is how it has refocused the need for clients to think long term and assess their choices and plans for retirement much earlier. Because even the most widely discussed and best laid plans still have a way of derailing.
This new environment arguably requires more planning discussions and investment and portfolio reviews. Ultimately, there is a need for advisers to help investors ‘look ahead' and ‘act now' if they are to assist them in securing a comfortable retirement.
From income concerns to the evolving client-adviser relationship, there are several key questions for retirees in a post-pandemic era - particularly as for many retirement will not be as rosy as their parents or grandparents. Are advisers set for this challenge?
Click here to access the full article in our Remodelling Retirement guide, which explores the changing nature of retirement in a post-pandemic world and asks advisers the key opportunities and challenges facing them in 2021.