Why the Language of Retirement Living Is So Important
You probably talk to your clients about retirement planning every day. But talking to them about retirement living can be a harder job, often loaded with potential sensitivities. For your clients, making the decision to sell what may have been their home throughout their adult life isn’t one they’ll make quickly or easily.
According to Today’s Wills and Probate, 23% of people plan to downsize in retirement. However, once this prospect becomes a reality, the option often becomes less appealing. This is reflected in the age breakdown of respondents: 32% of those aged 18-34 said they would downsize, compared to just 14% of those over 55.
For those not interested in downsizing, the reasons cited were:
• They are too attached to their home (31%)
• It is too expensive (22%)
• They have enough money to retire (19%).
So, where does this leave financial advisors? With just under a quarter of households considering changing their living arrangements, it’s likely you’ll need to discuss property plans with some of your clients.
Even for clients not invested in the idea, it’s important to show them the full range of retirement and later-life possibilities.
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Taking an empathetic approach and reframing your language can change clients’ views on their living arrangements |
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Shifting your approach from pure pragmatism into one of empathy and understanding is crucial. That almost a third of survey respondents felt such a strong emotional attachment to their property reflects the power of a “forever home” in many people’s eyes. While staying put may be a workable arrangement for some of your clients, changing needs in later life often require a rethink. Likewise, clients may already know that moving is part of their plan but still feel conflicting emotions when the time comes. As their financial advisor, it’s important to understand your clients’ retirement goals and identify financial pathways to achieve them. Reframing some of the language associated with moving can paint a brighter picture for your clients, helping to turn a painful and emotive decision into a positive one. The concept of “rightsizing” has been around for a while now, replacing the negative connotations associated with downsizing with a more confident perspective. Rather than an immediate focus on a smaller property to save costs, rightsizing looks at matching a new property with your clients’ needs, hopes, and lifestyle expectations. Retirement living can carry certain assumptions or expectations. You may find, if you raise the possibility with your clients, they shrug off the idea. An independent retirement community (IRC) is often mistakenly conflated with a care home and associated with elderly or sick residents. Your clients may also worry that a move into an IRC will mean a loss of independence – but as the name suggests, this is very much not the case. As your role is to explore the financial possibilities open to your clients, you will need to explain the truth behind these misconceptions. IRCs by no means represent a loss of agency and control: in fact, they’re more likely to enhance it. While care options may be available, the move is designed to support your clients’ wellbeing and offer a fulfilling later-life experience with greater independence and opportunity. Understanding the emotion involved in selling a family home, and reflecting this in your conversations, can be transformative for your clients. It can turn nerves into confidence, shifting an intimidating decision into a positive one – and opening up a future they can look forward to. |
To find out more see: https://www.riverstoneliving.com/advisors
