How can adviser help a client to see that financial efficacy can be a powerful reassurance? For clients experiencing the retirement readiness gap, advisers have an opportunity to help clients feel more connected to their goals.
In this second video of four from Fidelity Adviser Solutions, looking at the psychology of retirement, Mana Jhaveri – Behavioural Architect Manager at Cowry Consulting adds a little more detail of the behavioural science that forms a part of financial planning.
The retirement gap is when a client doesn’t feel prepared for retirement. Often, this is ‘gap’ occurs due to something that is more emotionally driven as opposed to being financially led – even the wealthiest clients can experience the retirement gap.
Low self-efficacy (or the ability to understand or engage with financial information) can lead to procrastination in managing finances, which in turn can have a knock-on effect with a client planning for their retirement.
In the opposite, clients that have higher self-efficacy are more likely to be on a front foot with planning, leading to better retirement outcomes.
Mana notes that advisers have a real opportunity to make a big difference to clients and their retirement years, by helping them to build self-efficacy. This video offers a three-step approach in ways to do so.
To learn more, watch the full video and access the full research report, head here: Exploring the Psychology of Retirement
Main image: efficacy, connect, jakub-zerdzicki-HKUkWePHS0w-unsplash
