As the average age of clients edges relentlessly higher, financial advisors need to sharpen their skills in dealing with the needs not only of newly retired baby boomers but also of senior citizens moving into later stages of a multi-decade retirement. For some advisors, elder planning can be a point of differentiation or a branding strategy.
Sterling Rempel, a certified financial planner with Future Values Estate & Financial Planning in Calgary, is one of many advisors adding to their proficiency by achieving the designation of elder planning counsellor (EPC). Rempel is a recent graduate of the Canadian Initiative for Elder Planning Studies, a national educational program focusing on seniors’ issues, including aging, declining mental and physical health, death of a spouse, financial planning, and long-term care. The EPC program is designed for any professionals whose occupation puts them in contact with aging people.
“A third of my clients are 55 or older, and I saw the designation as a way to understand better the challenges faced by elderly clients and improve my communication with them,” Rempel says. “Seniors are a large and growing group; they are where the market is.”
Rempel says the course provided him with particularly useful information on seniors’ housing, long-term care, government assistance and health. He now feels equipped to point clients in the right direction when they need resources.
“In dealing with clients, it’s about a lot more than money,” Rempel says. “Advisors are privileged to be involved in people’s lives, sometimes to a greater extent than people’s own families, and those with broad knowledge to draw on can be of great assistance when it comes to sensitive issues relating to aging and financial matters.”
The EPC designation can be earned either by attending a four-day classroom session costing $995 or through a distance-learning program in which advisors study the same course materials at their own pace, and then write the required three-hour exam in a nearby city. The distance-learning course costs $1,095. Both versions are eligible for continuing education credits.
Emotional issues play an important role in building trust with mature clients, and consultants experienced with seniors say there are a handful of key areas in which the understanding of an advisor can build bonds:
> Usefulness. The older a person gets, the easier it is to become isolated. People want to interact socially and use their talents and experience. Discuss your client’s passions, dreams and goals, and take an interest in his or her life story.
> Fear. Older people are dealing with a horde of new fears that include health, occupation, housing and loneliness. Having contingency plans in place and sufficient finances provides a sense of control.
> Independence. As people get older, they often become limited in mobility because of a chronic health condition. Your clients don’t want to be a burden to their families due to physical or financial need, and often their children cannot be relied upon.