More advisers are urgently needed in the retirement space as most are servicing clients in the accumulation stage, leaving the complex goals and expectations of retirees neglected, an industry executive said.
"There needs to be advisers focused in this space," The Trust Company executive general manager of personal client services Ray Gould told InvestorDaily.
"Traditionally, the majority of advisers focus in the accumulation space or the pre-retirement space so very few people focus on the next phase.
"In the planning space overall there are only about 20 per cent of individuals that have financial planners so you might even find that it's less in the retirement space because it's probably the least talked about part of life."
The investment strategies and the needs of clients who are retired are very different from those who are not, he said.
However, there's an opportunity for advisers to work and move into the retirement space due to the adviser shortage and the growing retirement population who are now also living longer.
"Our primary goal is to help Australians live through the retirement period comfortably, maintain their wealth, pass on their legacy and where necessary make a contribution to society," he said.
"People don't know what they don't know and haven't thought that far ahead and there are very few advisers focused in this space so there's not a lot of skills and knowledge [available]."
The ability for retirees to manage their funds diminishes alongside constantly changing needs therefore much greater support, such as having people in place to act on their behalf, is necessary, Gould said.
"The better those people have everything in place and plans are organised, the better they will see their retirement through," he said.
"The trouble is that people don't often realise. It's only when something triggers them that they start to act, get advice and do the planning."
Retirement planning requires a different skill set as it's a more involved process because of the estate planning, legal work and tax planning.
It will suit advisers who want to genuinely work with other professionals and understand the dynamics and needs in retirement, Gould said.
