The generation of 50-60 year olds have had children late, mortgage for longer, have higher debt, take loans out for cars, technology, furniture, second homes, have changed jobs on average six times and, in the main, had to pay for their own retirement.
Add to this the huge increase in early retirement and you have a very different financial landscape.
Cash-flow modelling is a vital tool in helping this generation understand how long their money will last and what they need to do to increase their chances of a financially improved retirement.
Those aged 20-40 are more aware of alternative and unusual investment opportunities, mainly due to social media. Bitcoin may be a step too far for their grandparents, but we get a lot of questions about it from this generation.
They also are far more attracted to ease of use, preferring everything on one app or platform; however, they are far less likely to value paying for advice and will take a lot longer to make a decision as to whether they want to follow yours, usually after trawling the internet for a better price.
The advising industry needs to be flexible to this approach and prepared to drop fees and take a longer-term view.
sonia.rach@ft.com
