Many advisors have told us they’re unsure about when and how to have the “moving conversation” with their clients. But as part of the FCA’s focus on holistic retirement advice, retirement living options must be part of your discussions. It can undoubtedly be difficult, however, especially if clients are set in their ways or shut the conversation down before you have time to properly discuss their options. Here, we’ll explore the top five barriers and concerns your clients are likely to raise about retirement living, and how you can productively respond.
Asking the right questions can help you have a more productive retirement living discussion
Retirement living is rapidly shifting further up the agenda for financial advisors. FCA guidance is for advice to move from a purely transactional, product-based approach to a more holistic system, looking at all aspects of retirement, including lifestyle and wellbeing.
For some advisors, this can be a relatively new area of discussion. Knowing when to start these discussions, what to include in them, and how to navigate any objections can be tricky. At Riverstone Living, we’re well versed in the most effective language to use and conversations to have about retirement living. Our team is always on hand to support you in helping your clients achieve the best outcomes.
To be clear, there is no magic “right” or “wrong” way, and your personal knowledge and relationship with your clients will also help to guide you. In many cases, it’s about introducing the subject early on – possibly before they’ve even thought about it – to gradually approach the possibility of change with them.
One of the most effective techniques is known as “SPIN”. This involves asking questions, rather than listing features or benefits, and stands for:
• Situation questions
• Problem questions
• Implication questions
• Need-payoff questions
• Situation questions
• Problem questions
• Implication questions
• Need-payoff questions
Here are the top five objections we know that clients will often raise, and some of the responses you could give in line with this approach.
1. “I want to stay in my own home so I can leave it to my family when I die”
This is a common refrain and completely understandable. For many people, the family home is the pinnacle of their lives together, even if children have long flown the nest. The thought of uprooting can be unsettling, and they can often be quite determined that leaving the family property as a source of wealth is a big priority.
However, not many will have considered the potential disadvantages of staying put. Unfortunately, this can mean they have limited choices if they find they do need to move, and this can impact their quality of life.
Large family properties can become unsuitable as people grow older, especially if they find themselves living alone. Reduced mobility can sometimes make stairs difficult, for example. And the costs associated with modifying, running, and maintaining a house are not insignificant.
Involving your clients’ family can often help if this is the sticking point. Many adult children will actively encourage their parents to downsize to improve their quality of life and feel reassured they are moving to a secure, safe environment.
Questions you can ask to guide the conversation:
• Have you considered where you would move to in retirement?
• What do you know about retirement living options?
• If you didn’t have to worry about the house and maintenance, what would that mean for you?
• How would fixed monthly outgoings help you?
• Do you think the decision of moving will get easier or harder as you age?
• Have you considered where you would move to in retirement?
• What do you know about retirement living options?
• If you didn’t have to worry about the house and maintenance, what would that mean for you?
• How would fixed monthly outgoings help you?
• Do you think the decision of moving will get easier or harder as you age?
2. “I don’t want to live somewhere like that”
Retirement living can often conjure up unwelcome images of an “old people’s home” or a care home. But in reality, an IRC is a completely different brand of retirement living. In many ways, an IRC is a much more high-end, luxurious environment, with options tailored to your clients’ exact requirements.
Questions you could ask:
• What do you know about retirement living options?
• Listening to the problems in your current home, how much peace of mind would that give you if you didn’t have that concern/expense?
• Do you have (or foresee) any problems with the stairs going to the upper level?
• How do you cope with the maintenance of your property?
• What do you know about retirement living options?
• Listening to the problems in your current home, how much peace of mind would that give you if you didn’t have that concern/expense?
• Do you have (or foresee) any problems with the stairs going to the upper level?
• How do you cope with the maintenance of your property?
3. I’m too young to think about retirement living
Even if your clients think they’re too young at the time, it’s never too early to start planning for their future living needs. Giving them a good understanding in advance can help to support them in making the transition smoothly, rather than feeling they’re making a rushed decision.
Anecdotally, speaking to Riverstone residents has told us that almost all wished they’d moved in sooner. Talking to your clients about making these decisions while they’re in good health can often be far better than waiting until they’re left with little choice.
Questions you could ask:
• How much reassurance would it provide you to have health and wellbeing experts on hand?
• Do you have any concerns about moving home?
• How old do you think you have to be?
• Do you want to be able to make any future decisions about your next move? If you don’t, someone else may make them for you. So wouldn’t it be better to have a plan?
• How much reassurance would it provide you to have health and wellbeing experts on hand?
• Do you have any concerns about moving home?
• How old do you think you have to be?
• Do you want to be able to make any future decisions about your next move? If you don’t, someone else may make them for you. So wouldn’t it be better to have a plan?
4. I’ve got plenty of friends and everything I need where I live now
This is likely true at that moment in time. However, social interactions can become harder as people age, especially if their mobility is reduced. An IRC can open up new opportunities for making friendships and connections, and enjoying a range of social activities, without compromising independence.
Questions you could ask:
• What do you enjoy doing socially?
• Do you get out to do things as often as you did?
• What would having a community of like-minded people around mean to you?
• Is there anything you’ve stopped doing recently, and what was the reason?
• What do you enjoy doing socially?
• Do you get out to do things as often as you did?
• What would having a community of like-minded people around mean to you?
• Is there anything you’ve stopped doing recently, and what was the reason?
5. “I want to leave as much as possible to my children.”
This ties in with the “wanting to stay put” objection, as many people feel that if they sell their family home, they’ll be somehow doing the wrong thing by their children’s inheritance. However, most IRCs, including Riverstone, operate on a “deferred fee” model, where up to 30% of the sale value is returned to the IRC once the property is sold. Many clients will see this as a negative initially, until they understand how the process works. The 30% deferred fee is removed from their estate for Inheritance Tax purposes, meaning their loved ones could actually see a reduced bill.
A conversation about estate planning, including keeping their estate value as low as possible, can help your clients to understand the possibilities the deferred fee could actually bring to their families.
Questions you could ask:
• Do you understand how Inheritance Tax is calculated?
• If we could potentially bring this bill down for your children, would moving still be an issue?
• Do you understand how Inheritance Tax is calculated?
• If we could potentially bring this bill down for your children, would moving still be an issue?
Get in touch
Riverstone Living offers an elevated retirement living experience, with wellbeing and fulfilment at its heart. To find out more, please visit https://www.riverstoneliving.com/advisors, email bruce.ely-johnston@riverstoneliving.com, or call 0207 993 9061.
Please note this article is for general information only and does not constitute advice. The information is aimed at individuals only. All information is correct at the time of writing and is subject to change in the future. The Financial Conduct Authority does not regulate estate planning, tax planning, or trusts.
