A large majority, 86 per cent, of advisers saw an increased demand for advice on later-life planning over the last year, according to research from Prudential.
The insurer says advisers are seeing a surge in enquiries about later life financial planning and are reshaping their business to adapt.
Prudential’s UK-wide survey of advisers, shows more clients are addressing the risk of cognitive decline in later life, with 37 per cent of advisers saying they are being increasingly asked for support with setting up Lasting Power of Attorney. More than a third, 34 per cent, have been asked for financial advice about coping with physical and mental impairment in later life.
Despite this, Prudential found 22 per cent of advisers are ‘extremely concerned’ clients are not serious enough about the risk of cognitive decline and its impact on their ability to manage their finances.
Nearly half, 45 per cent, of advisers are adapting their businesses by implementing processes to avoid potential regulatory issues and 32 per cent are considering doing so.
Advisers are also urging clients to seek specialist legal support in case their decision-making is impaired in later life, with 73 per cent saying they raise this with clients regularly.
Three quarters, 75 per cent, of advisers have set up partnerships with specialist firms to meet demand for LPAs. But Prudential says there is scope for more partnerships as only 57 per cent of firms said they would advise on setting up trusts and estate planning and 33 per cent advise on equity release.
Prudential retirement expert, Vince Smith-Hughes, said advisers need to be prepared for meeting the demands of an ageing population: “The ageing population is having a major structural impact on financial services and represents a huge opportunity for financial advisers – but they need to be well prepared and ensure that their procedures and work practices can support elderly clients, some of whom could be vulnerable.”
SIFA development director, Dave Seager says: “Increasing longevity and the requirements to provide advice to vulnerable or potentially vulnerable clients is fundamentally changing the financial services landscape. It’s never been more important for advisers and solicitors to work together to ensure clients current and future objectives can both be met.”