White Paper calls for new approach to retirement planning


Assyat David

The financial advice landscape has changed dramatically in recent years, particularly in relation to the stated requirement for advice to address likely future needs (see FASEA Code of Ethics, Standard 6). Nowhere is this more compelling than in retirement planning.

The changing regulatory environment has combined with increasing longevity and frailty issues to raise the very real threat of advisers being held accountable for clients having insufficient funds to support themselves as they age, including in aged care.

Aged Care Steps has published a White Paper on precisely this issue, calling for new approach to retirement planning, one which equips advisers to support their clients through key life transitions as they age.

‘The real-life phases of retirement are not defined by age, as previously thought, but by levels of frailty and dependence,’ says Assyat David, a director of Aged Care Steps.

‘The three phases of retirement – the carefree years, the quiet years and the frailty years – need to be treated as distinct periods, with tailored planning considerations and outcomes.’

The approach has implications for multiple aspects of an advice business – advice processes and ongoing service model, portfolio construction approach, revenue models and client value proposition.
Assyat David says it’s not about forcing every financial advice business to become an aged care expert.

“It’s about ensuring your advice business is aged care ready; which means you have a robust business model that caters to the planning needs of your clients entering the frailty years – so that you can demonstrate that you have considered their position and provided advice that is in their best interest and meets their broader, long-term needs; whether that advice has been provided directly by you or a referral partner.’

Aged Care Steps specialises in supporting advice professionals to build and develop a profitable aged care advice business, so clients can receive meaningful and effective aged care advice.
‘Our training provides the technical competence and confidence to provide aged care advice’, explains Assyat David.

‘Our subscriber services – the Business Toolkit™ and the Advice Generator™ – provide the intellectual property, business tools and general know-how to operate a best practice aged care advice business – at the level you choose.’

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