This increasing client risk will change advisor practices. Here’s why
March 14, 2019 by Lavanya Nair
When asked what’s the biggest impact on their practice, advisors didn’t point to artificial intelligence, robos or even climate change. Instead, they’re fixated on longevity risk.
Clients’ ever-increasing lifespans are challenging assumptions about spending rates, savings and more, say advisors, who singled out longevity in a survey released last month by Schwab Advisor Services.
In the survey, 29% of participating advisors identified longevity as the leading macro trend that is shaping their firms. Within that group, 44% of advisors expect that longer client life spans will significantly impact their businesses over the next decade and 57% cite the challenge of ensuring that their clients’ assets will last throughout their lifetimes.
Discussions on this topic can be difficult with clients expressing skepticism and uncertainty. “When you put forward an age of 90, most clients tell you they don’t believe they’ll even make it that far,” says Mindy Cleaveland, a financial advisor at Modera Wealth Management.
Click HERE to read the full story via Financial Planning.
