Report Calls for More Senior Spending, New Tier of Financial Advice

If you’re retired and sitting on a decent pension pot, George Osbourne wants you to start spending more money. Well, not just the Chancellor, but the government in general as it appears that the slowing spending habits of seniors are not exactly doing a great deal of good for the economy.

A report published this month by the International Longevity Centre reached out to the IFA community to start offering a new tier of advice, specifically for older clients. Somewhere between premium and basic advice, the idea would be to help ensure senior consumers were provided with the best possible advice at the right price.

“Bringing financial advice to the mass market – whether face to face, over the phone or on the internet – is long overdue and we call on the Financial Advice Market Review [FAMR] to facilitate real change in this area,” the report said.

In specific, one of the areas the report focused on was the way in which the older consumer population tends to ease off the spending at such a rate than a fast-aging population could put a dampener on economic growth. Put simply, research carried out by the Living Costs and Food Survey and the English Longitudinal Study of Ageing found that consumers around the age of 70 display a marked reduction in spending in general – right at the time their savings begin to increase healthily.

Unsurprisingly therefore, it is being suggested that independent financial advice could play a key role in encouraging and guiding the spending habits and decisions of older consumers, with the greater good of both themselves and the UK economy in mind. Nevertheless, it was made clear that it would take more than just a quick ‘once over’ financial review. To make any real difference at all, on-going advice and guidance would be called for.

The government has for some time expressed concern over the fact that both less-wealthy consumers and those of an older age are not receiving the kind of financial advice they could really do with. The suggestion has been made on multiple occasions to introduce different tiers of advice. Along with several standard ‘rules of thumb’ when it comes to advising those in specific brackets.

At the last count, retired individuals in the UK were said to have made total savings of £48.7 billion in a single year, amounting to 2.8% of GDP. A recent survey found that in households headed by those aged 80 or over, average annual spending is 43% less than in households headed by those aged 50 and over.

Of course, critics argue that it is nonsensical to expect older age groups to be spending as much as those several decades younger, who may be considerably more active and live busier lifestyles in general. Nevertheless, the call for comprehensively accessible financial advice remains as strong as ever, particularly in an era where pensions and retirement savings in general are subjects becoming more complicated than they have ever been.

If you’re retired and sitting on a decent pension pot, George Osbourne wants you to start spending more money. Well, not just the Chancellor, but the government in general as it appears that the slowing spending habits of seniors are not exactly doing a great deal of good for the economy.

A report published this month by the International Longevity Centre reached out to the IFA community to start offering a new tier of advice, specifically for older clients. Somewhere between premium and basic advice, the idea would be to help ensure senior consumers were provided with the best possible advice at the right price.

“Bringing financial advice to the mass market – whether face to face, over the phone or on the internet – is long overdue and we call on the Financial Advice Market Review [FAMR] to facilitate real change in this area,” the report said.

In specific, one of the areas the report focused on was the way in which the older consumer population tends to ease off the spending at such a rate than a fast-aging population could put a dampener on economic growth. Put simply, research carried out by the Living Costs and Food Survey and the English

Longitudinal Study of Ageing found that consumers around the age of 70 display a marked reduction in spending in general – right at the time their savings begin to increase healthily.

Unsurprisingly therefore, it is being suggested that independent financial advice could play a key role in encouraging and guiding the spending habits and decisions of older consumers, with the greater good of both themselves and the UK economy in mind. Nevertheless, it was made clear that it would take more than just a quick ‘once over’ financial review. To make any real difference at all, on-going advice and guidance would be called for.

The government has for some time expressed concern over the fact that both less-wealthy consumers and those of an older age are not receiving the kind of financial advice they could really do with. The suggestion has been made on multiple occasions to introduce different tiers of advice. Along with several standard ‘rules of thumb’ when it comes to advising those in specific brackets.

At the last count, retired individuals in the UK were said to have made total savings of £48.7 billion in a single year, amounting to 2.8% of GDP. A recent survey found that in households headed by those aged 80 or over, average annual spending is 43% less than in households headed by those aged 50 and over.

Of course, critics argue that it is nonsensical to expect older age groups to be spending as much as those several decades younger, who may be considerably more active and live busier lifestyles in general. Nevertheless, the call for comprehensively accessible financial advice remains as strong as ever, particularly in an era where pensions and retirement savings in general are subjects becoming more complicated than they have ever been.