Aged-care services broaden advice prospects

Generalist advisers should look to aged care for further opportunity.


By Kristen Crawford

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Aged care provided valuable opportunities for generalist advisers to build out their service propositions and access a more extensive client base, according to Aged Care Steps.

“More and more, we’re seeing advisers think about [adding aged-care services to their offering] and increasingly getting their clients to plan for aged care,” Aged Care Steps director Assyat David said at financialobserver’s Aged Care Summit 2015 in Sydney yesterday.

Statistics showed a majority of advisers expected they would provide aged-care advice in the next three years, David said.

“Investment Trends research found 59 per cent of advisers were already providing some aged-care advice, but only to a very small proportion of their client base, 7 per cent,” she said.

“But in three years’ time, the intention was for 85 per cent of advisers to provide some kind of aged-care advice to nearly a fifth of their client base.”

When trying to determine ideal age-cared clients, she said advisers should look to those aged from 45 to 70 with elderly parents.

“Individuals aged between 45 and 70 with elderly parents would most likely make up 90 per cent of aged-care clients,” she said.

“Delving deeper into that, you’re also looking for clients that [preferably] are holding the enduring power of attorney or are the executors of their parents will because it shows they are the ones trusted with their parents’ financial affairs and manage the situation on behalf of the elderly parents.

“Also, you might look into the elderly parent themselves who are thinking about downsizing and are starting to show signs that they’re not coping too well and starting to rely more on their family and friends to help them with shopping or paying the bills.”

Meanwhile, aged care had naturally experienced a growth in interest among consumers because the space had become increasingly complex in terms of options and family dynamics, she said.

“Advisers can act as the mediator for the family [where there are broken down relationships],” she said.

“There is generally a growing popularity of people wanting to stay in their family homes longer, wanting to understand how to go about it and for clarification around things like assessable income.”

Moreover, the process of delivering aged-care advice to clients provided advisers with an opportunity to develop relationships with the clients’ siblings or children and gain their trust while introducing them to what the adviser actually did, she said.

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