We are closing in on three years since the early days of the pandemic. And, while we learn to live with the virus circulating in society, we also are adjusting to a post-pandemic lifestyle. The lockdowns were such a huge gear shift for many, they forced a complete rethink of work.
This has led to a big uptick in what is described as the ‘economically inactive’ – almost entirely driven by 50– to 64-year-olds, coined the ‘grey resignation’.
In the UK, unlike other developed economies, economic activity has not rebounded following Covid. Many people, particularly in this age bracket, left the workforce during the pandemic and currently have no intention of returning.
Happiness in later life is usually associated with a sense of purpose
In fact, just before Christmas, prime minister Rishi Sunak tabled a plan to give over-50s a mid-life MOT to assess their financial health in a bid to get them back to work.
While some will certainly have left due to problems such as long Covid, one of the main reasons given is that the pandemic allowed them to experiment with a different lifestyle.
But multiple studies show happiness in later life is usually associated with a sense of purpose. For many, the years since lockdown have represented a change from the mundanity of their regular job, perhaps performed over decades.
Soon, though, the sense of purpose-less may bring them back to the workforce. Some commentators think the ‘great unretirement’ may be coming and this could represent an opportunity for financial advice.
Firms must consider how they might be able to attract these huge numbers of economically inactive people to think about a second career in financial services
While we certainly need to get younger people into the advice profession, we also need advisers from all walks of life and some clients feel much happier with someone who has more life experience.
So it is crucial firms consider the impact of an ageing workforce and how they might be able to attract these huge numbers of economically inactive people to think about a second career in financial services.
People over 50 make up roughly a third of the UK workforce and this number is expected to continue to rise. This presents a great opportunity for businesses to tap into the knowledge and skillset of experienced workers, who bring a lot of value.
Particularly within the advice profession, the ability to work from home, talk to clients and have a sense of helping them might be enough of a draw to get people back to work.
Continuing to work even part time while saving into a pension, rather than taking pension income earlier, can make a huge difference to lifestyle in retirement
Whether it is in client-facing roles or support roles, older people can use their skills and experience to help ensure clients make informed financial decisions and plan for their future. In fact, an older employee might also be better able to connect to a growing base of older clients, while providing leadership and mentoring to younger generations.
We also know that more and more people are opting for a phased retirement, not wanting to completely disengage from work but just to work less. That opens opportunities for a business to benefit from someone’s tacit knowledge and expertise while offering critical part-time cover.
As we all know, continuing to work even part time while saving into a pension, rather than taking pension income earlier, can make a huge difference to lifestyle in retirement, and this issue is more pronounced for women than for men.
Businesses must start with age-neutral recruitment but further to this look to create age-positive cultures that support flexible working, focus on wellbeing and work-life balance, and encourage learning and development at all ages.
This will benefit not only the experienced workers themselves but also the overall success of the business and, ultimately, our clients.
The advice gap is a serious problem and attracting talent, young and old, needs to be of paramount importance in 2023.
Amanda Cassidy is managing director of Quilter Financial Advisers
HFMC Wealth has acquired City-based R&S Financial Planning Ltd, in a deal which further strengthens its London office. The deal will add around £680,000 of annual recurring revenue to HFMC Wealth, and assets under advice of £145m. The average client size is £1.2m, which marries perfectly with HFMC Wealth’s high-net-worth proposition. The transaction, which completed […]
Apricity is producing a guide to help individuals and firms to switch from one statements of professional standing (SPS) provider to another. At the time of publication, the guide was with Apricity’s marketing team being produced and will be available in the coming days. Apricity head of adviser support Christian Markwick told Money Marketing that […]
Do you know what clients think about the service you provide? Too often, advisers respond to this question by citing their zero complaints with pride. While having no/low numbers of complaints is a good key performance indicator measure, it doesn’t necessarily mean clients are completely satisfied. In actual fact, they might consider your service to […]
Caroline Stuart has resigned from her roles as president and member director of the Personal Finance Society (PFS) board. She is standing down with immediate effect. In a statement, Stuart said: “The untold pressure that the PFS board is currently under is now also at the detriment of my health and I have taken the […]
Does recent legislation risk an over-concentration of funds in a limited part of the market? And is this detrimental to investor choice? Head of Sustainable Investments, Mike Fox shares this thoughts. Read the article Past performance is not a reliable indicator of future results. The value of investments and the income from them is not […]
You must be logged in to post a comment.
© 2022 Metropolis Group Holdings Limited and / or its subsidiaries and licensors. All rights reserved.
Copyright © 2019 EMAP Publishing Limited
Metropolis Financial Platforms Limited
Registered in England and Wales with number 06439194
Registered office At 10th Floor, Southern House, Wellesley Grove, Croydon, England, CR0 1XG
Forgot your password?
Register today to receive our range of news alerts including daily and weekly briefings.
Be the first to hear about our industry leading conferences, awards, roundtables and more.
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.
Apply for your FREE Money Marketing subscription today to start benefiting from our award-winning editorial content delivered to your home or office every month.