Louise Biti, Founder and Director of Aged Care Steps, recently wrote about the new Aged Care Act which is poised to come into effect on November 1. She deserves a big thank you for not only alerting all of us to the changes, but for also suggesting a number of strategies in response. Well worth a read: How the new Aged Care Act impacts advisers | Advisely.

From our perspective, it would be wise for any adviser to invest some time and thought into getting a clear understanding of these changes – implications and regulatory obligations aside (and there are some), why wouldn’t you? Sure, these changes require gaining some new knowledge, BUT they also provide opportunity for client retention and new client acquisition.

Some facts & stats:*

>>  The majority of Australian advice firms are serving an aging clientele; 55% of clients are aged over 60 years, with 45% already retired.
>>  The client-comments we receive, through our CATScan client satisfaction survey service, indicate there are a few new influences impacting their world:

  • the desire for a full and happy retirement
  • health (physical and mental), longevity and aged care
  • estate planning and families
  • giving back and leaving a legacy – ethical investments and philanthropy

And yet:

>>  The average Client Score for “Range of services” has been in steady decline over the last 4 years, and is now ranked the third lowest out of 9 KPIs. This trend is reflective of an aging clientele, whose needs have evolved, while perhaps their advisers have yet to catch up.
>>  Just one in three practices currently offer aged care advice (either directly or via external referral to their network), 42% offer estate planning and 52% offer Centrelink support.
>>  24% of practices have expressed an intention to expand the depth/breadth of their service offer to include aged care.

We have long promoted the notion that estate planning is a service much appreciated and valued by clients, while also providing advisers with the opportunity to build a relationship with the client’s children and/or the beneficiaries of the estate.

Five strategies for adapting to these changing times:

1. Decide which services you will be offering to clients aged 60+, and if you will be developing the capability to provide these services in-house, or if you will be looking to hire someone with the necessary expertise or outsource some services. If in-house isn’t for you, establish an external network of aligned professionals with whom you can work with.  Whatever your strategy, ensure your fees reflect accordingly – price your services for profit.

2. Ensure your CRM is comprehensive, up-to-date and full of the type of info you need to build, maintain and enhance not only your relationship with your clients but also with their children. And we’re not simply talking names and ages but also their interests, aspirations and concerns.

3. Regular research over the years has continued to reveal that children will look to terminate the services of their parent’s financial adviser upon the death of a parent, with the major reason being; they feel that they don’t know the adviser. Connect with the children before it’s too late.

4. Shape your communications to ensure they always reinforce your capability. Paying particular attention to:

  • Frequency of your message – our analyses continue to reinforce that those practices communicating at least monthly, are achieving greater cut-through while also achieving a higher level of profitability.
  • Variety is a good strategy. Your comms can be delivered through different formats; newsletters, blogs, video, posts, phone calls, face to face and group meetings.
  • Targeted communications ie for your 60+ years clients. Address specific communications to them on the importance of health, longevity, aged care and estate planning. And for their children – a specific reach out on relevant subject matters such as managing credit cards, cash control or schooling for example.
  • Webinars, podcasts or in-person events, incorporating an external expert, will always be appreciated by clients. Informative and educative communication is pre-requisite.
  • Does your website have simple questionnaires, easy to complete calculators and helpful info packs readily available to clients and prospects?
  • Leverage your regular review or progress-to-plan meetings as they allow you to showcase your capability and demonstrate the value you’re delivering, for the fees the client is paying. Provide, for example, a pre-meeting questionnaire which covers pertinent estate and/or aged areas.

5. Seek feedback from your clients on a regular basis (for established clients at least every second year). Feedback should be confidential and anonymous, conducted by an independent third party who can provide you with an objective assessment, complete with benchmarking comparisons as to their level of client satisfaction with you and your services.

Whatever the approach and strategies you choose, aging clients and intergenerational wealth transfer present huge opportunities for advisers; to expand their service offer and gain new clients. Investing in a little forethought and planning will give you the best chance of optimising this potential. Develop your plan, commit it to writing, entrust someone to hold you accountable and …implement!

For your consideration.

*All statistics have been derived from Business Health Pty Ltd Data Warehouse 2025; Future Ready IX, HealthCheck, CATScan, Estate Planner.