We seem to be adding new phases, terms, and words to our ever-growing list of shorthand used to describe our changing world. Lately you have probably heard the term “silver tsunami” making its way from nightly news to daily conversation. The phrase \”silver tsunami\” refers to the oldest boomers (Baby Boomers) turning 75, a group of 73 million people strong. We’ve discussed in the past how this silver wave will present unique challenges for advisors over the next decade with 37% of advisors retiring. For advisor the silver tsunami is creating a two-pronged challenge with advisor leaving the field and an entire new demographic of clients needing services.
Here’s how advisors can ride this silver tsunami to success:
Shift in client needs
Financial advisors will need to adapt their services to cater to the specific needs of a retired clientele. This may involve focusing on income generation strategies, wealth preservation, and healthcare planning, in addition to traditional wealth management services.
Tip: Focus on specialization: As the field becomes more crowded, advisors may find success by specializing in specific areas, such as catering to specific age groups or catering to unique needs like healthcare planning or socially responsible investing.
Competition for clients
With a potentially larger pool of potential clients, financial advisors may face increased competition from traditional and online platforms offering financial planning services.
Tip: Adapt with technology: Embracing technology will likely be crucial for advisors to stay competitive and efficiently manage a potentially larger client base. This may involve utilizing tools for financial planning, client communication, and remote service delivery.
Retirement planning services
As the Baby Boomer generation reaches retirement age, the demand for financial advisors specializing in retirement planning is expected to surge. This includes services like creating retirement income plans, managing retirement portfolios, and navigating Social Security benefits.
Tip: Plan for your own future: Many established advisors may be approaching retirement age themselves. This could lead to opportunities for younger advisors to take over existing client portfolios, requiring effective transition plans and smooth client onboarding processes.
Overall, the silver tsunami presents both opportunities and challenges for advisors. By adapting services, embracing technology, and understanding the evolving needs of retiring individuals, advisors can position themselves for success in this continually changing landscape.
Source: Forbes – Feb, 25, 2022: \”Bracing For The Silver Tsunami\”