Thanks to improvements in medicine, healthcare, food availability and quality – people in the 21st century are living well into their nineties and beyond. In fact, the Office of National Statistics (ONS) projects that there will be more than 50,000 centenarians living in the UK in 2050 – a significant jump up from the current number in England and Wales which sits at approximately 15,000.
Living for longer can give people a wonderful opportunity to do more, see more, pursue life goals, and spend more time with loved ones, living alongside and learning from younger generations. However, as explored in ‘The 100-year life: Living and working in an age of longevity,’ co-authored by psychology and economics experts, Lynda Gratton and Andrew J. Scott, and previously shortlisted for the FT/McKinsey Business Book of the Year Award – longer life means ripping up well-established pathways and staying open to new prospects. This means moving away from the traditional notion of a three-stage approach to working life – essentially education, followed by a period of working before retirement. A longer life means longer-term financial planning, and wealth management. It means fashioning a life and career path that is more fluid, and sustainable – a path that makes space for rest, development of new and necessary skills, and is more aligned to your personal values.
Longevity of life is something financial advisers, and potential financial advisers, need to consider – both from a rewarding career perspective, and for what it means for their client base.
A rewarding career choice for the long haul
In contrast to perceptions as a “get rich quick scheme”, a career in financial advice is better suited to someone looking for longevity in what they do. Someone looking to build a strong client base, to create something sustainable and meaningful.
St. James’s Place’s own 2024 research has found that seven years is the typical length of a relationship between an adviser and their client, and 62% people never change their adviser. These stats are reflective of the care and consideration advisers put into building and maintaining their client relationships over time. They are reflective of the soft skills financial advisers bring to what they do, communicating with clients during challenging moments of their lives – whether that’s providing mortgage advice for buying a house, financial planning for divorce or helping clients to navigate a sudden change in financial situation, such as redundancy.
The relationships built in financial advice are long-term, rather than transactional – like the type that, for example, you’d expect from a mortgage professional. Working with a client isn’t about brokering one deal, and then it’s done. A happy client will return to their financial adviser again and again, as their life and financial priorities shift. Far from being just about the numbers, being a financial adviser requires empathetic listening – a skill transferable from more people-focused careers. For example, SJP Partner Paul Wright supported his client, Peter, following a cancer diagnosis. Paul was able to offer Peter some peace of mind, helping him to organise and protect his finances for his family, particularly related to mortgage advice, should the worst happen. In challenging times like these, deep connections can form, creating a sense of purpose for financial advisers, which is often the fuel behind a career that lasts – even when things are challenging.
Aside from the longevity of a career in financial advice that comes from the nature of the work itself, being the owner of your own business enables a different kind of sustainability. The flexibility that comes from working for yourself, allows you to take the time off to work on, as described in ‘The 100-year life,’ your “intangible assets” aka your health, your skillset, and your relationships – all crucial components to building a longer, positive, well-funded, career and life.
Helping others navigate a long life
Financial advisers also need to consider how a potential longer life impacts their clients, and what this means in terms of the advice they need to provide. They need to prepare and advise clients to tread those unworn paths – such as changing career in much-later life, and postponed retirement. SJP Partner, James, has known his client, Gary, for ten years. They’ve developed a friendship over that time, and how James has been able to help Gary has changed as Gary’s life has changed. What started out as investment advice, has turned into a plan to look after Gary’s entire family.
Just as financial advisers need to consider for their own development, clients will need help planning for, and financing, career gaps. Do they need to consider full time education and, if so, how are they going to fund themselves through it? Could they consider part time options instead?
A massive consideration is the likelihood of unexpected illness, or physical limitations, that develop with older age. This could be mean a client is no longer able to work in their chosen field, for example, a plumber who develops a bad back or a bus driver who develops poor eyesight. Financial advisers have a role to play in preparing their clients for these potential, longer-term scenarios as the sooner they can be planned for, the easier it will be to pivot from later.
A strong adviser to client relationship can sometimes lead to generational planning aka planning for younger members of the same family. If a client is happy with the financial advice they’re receiving, they’re likely to recommend the same adviser, as someone who can be trusted, to the next generation of the family. This can have advantages related to longer life, as the financial adviser will have a holistic understanding of the family, and their finances. This is beneficial when it comes to planning for later life care – as it gives the family the option to work towards a common financial goal – whether this means the older family member staying in place to receive care at home, moving in with the younger generations, or having options when it comes to retirement homes. It also supports more seamless wealth transfer to the next generation.
Creativity to support a sustainable career
A longer life, and what it can bring, should be a cause for celebration. This means looking ahead and taking creative approaches to life and career opportunities. As with executing anything worthwhile, it’s important not to rush. Financial advisers are in a unique, and strong position, to drive a successful long life for both themselves, via purpose and flexibility, as well as for their client base.