Why discussing retirement living with female prospects engages them more than leading with finances

Why discussing retirement living with female prospects engages them more than leading with finances 

When speaking with women about their finances, leading with lifestyle and living considerations often resonates more deeply than focusing solely on financial mechanics.
Women focus more on family, relationships, and meaningful activities. Simply, it’s less about how much money they need, but rather what kind of life they want to live.

Framing the conversation around retirement living may at first seem a little misguided. However, the attributes of these purpose-built environments tick a lot of boxes that appeal to women. That might include:
• Community
• Security
• Peace of mind
• Quality of life.

So, you can connect emotionally with your female clients before moving into how they can use their finances to support them in achieving these goals. In other words, their wealth is not the solution to them achieving their objectives, but rather the enabler.

This is where Independent Retirement Communities (IRCs) come into play.

Community 
The community provided by retirement living is stronger and more lifestyle-focused than most others. With gyms, pools, cinemas, restaurants, and other facilities all on-site, it’s easy to make and be around friends. That might be through spending mealtimes with one another, attending cultural events, or being involved in creative projects that they wouldn’t ordinarily seek out.

Security
Security in these environments comes in many forms, from the physical presence of door staff and security cameras, to the emotional safety of getting to know residents and other members of the team.

Peace of mind 
It’s not just the additional security that provides peace of mind, but also the financial model of these residences. The unique way this functions means that residents can enjoy fixed costs for life, with no inflationary increases or nasty surprises coming from unforeseen events.

Quality of life 
Altogether, the facilities and community increase quality of life and can result in a happier and more enjoyable lifestyle. An underlying component to this is wellbeing, something else that can be a big part of retirement living. Having on-site nutritionists, physios, and more to help with mind, body, and soul empowers residents to maintain their physical and mental fitness, helping them live a long and happy life.

Retirement communities make it easy and take away the worry 
Many women seek financial advice during life-changing moments: widowhood, divorce, retirement, or caregiving transitions. In these moments, lifestyle and community are front of mind.

By leading with these, advisors meet clients where they are, emotionally and practically. So, focusing on retirement living communities and what they can provide can be a clear differentiator in a busy market.

Don’t overlook the importance of your client’s residence when it comes to building your retirement planning journey

Many firms are designing their retirement planning journey, most of which will be an adaptation of their existing planning process. And for many firms with an established client bank, little will need to change when it comes to undertaking reviews.

It’s likely that this will revolve around reviewing a client’s current finances, checking that nothing has changed, and reviewing their goals, making sure that any strategies have been or will be achieved. It will probably also involve ensuring any lifestyle documents are in place, like a will or Lasting Power of Attorney.

At this stage, the focus will probably turn to exploring tax-efficient withdrawal strategies. But what is that plan based on? In all likelihood, it’s the standard journey:

• A client retires now and spends a couple of years with higher expenses as they undertake holidays they had always wanted to go on, or engage in hobbies they missed
• Next, expenses, holidays, and hobbies will likely reduce as the inevitable slowdown rolls in
• Finally, there’s the modelling of the client’s life expectancy out to 100 with five years in a care home.

But here’s the key – more and more people are breaking the mould of this stereotypical retirement journey.

And whether they need liquid assets, hence requiring taking equity out of their property, or have more than enough, their living situation and residence can play a big part in planning.

Do you challenge or educate clients on their understanding of the differences, and reality, of staying in their current home, versus traditional retirement housing, care homes, or Independent Retirement Communities (IRCs)?

Some IRCs provide tax benefits, with up to 35% of the property’s value excluded from the estate for Inheritance Tax purposes.

We know care homes can be astronomically expensive, but some IRCs provide similar or better care services at half the price of a traditional care home. Do you know which?
Then, there’s the softer side of increased wellbeing provided through IRCs that can reduce the likelihood of ever having to move to a care home or traditional retirement housing situation.

Being better educated on later-living options and their implications can have a significant financial impact, and that’s exactly why they should form part of a retirement plan. Plus, with IRCs being a growing sector, more people are moving to them earlier, much earlier.

With the FCA’s current review of retirement planning underway and consumer outcomes being top of the agenda, can you afford not to build retirement living into your retirement journey?

To find out more see: https://www.riverstoneliving.com/advisors