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As investment management becomes commoditized, financial advisors will have to rethink how they add value to clients. And advisors can add increasing value through longevity solutions, said Bill McManus, director of strategic markets, Hartford Funds, during a session at Schwab’s annual IMPACT conference in San Diego.
As clients age, advisors are a key component in assisting clients, and they should act as marketers of retirement lifestyle, McManus said. Most technology startups market to millennials, when, in fact, baby boomers have the money to spend on their services. Advisors can steer clients towards the technology that will help them in old age. Here are the top five ways.
Retirement was once a clear line between working and not working. But by 2022, 32 percent of people between the ages of 65 and 74 will be in the workforce, Bill McManus said. That’s up from 20 percent in 2002. Eleven percent of people 75 and older will work, up from 4 percent in 2002.
Technology is offering this older workforce new options and flexibility, he said. There are now apps that offer flexible jobs, such as Uber, Airbnb and Lyft. There are more Uber drivers over the age of 50 than under 30. There are also online learning sites that keep skills sharp, including Udacity, edX, Khan Academy and Lynda.com.
Baby boomers have fewer children than the World War II generation, and their kids are more likely to be geographically dispersed, McManus said. There’s a risk of isolation after retirement as friends and family scatter.
But technology can help retirees stay connected, including Skype, Facebook, Instagram, Snapchat, Connected Living and OurTime, a dating site for people over 50.
Being able to get around is crucial to quality of life in old age, McManus said. And reduced mobility to go where you want leads to declines in both mental and physical well-being. According to AAA, older Americans who have stopped driving are almost two times more likely to get depression and nearly five times as likely to enter a long-term care facility compared to those who remain behind the wheel.
But a lot of technologies make it easier for older drivers, such as smart headlights, reverse monitoring systems and assistive parking systems. And while Google’s self-driving car is not here yet, the technology is on its way.
Apps are available that reduce the need to drive, including Uber and Lyft, which summon drivers to take you where you want to go. Take clients on an Uber drive, McManus suggests. Show them how to use the app, and rate the driver after the experience. Then the next time they pull out their Uber app and friends ask, "Who taught you how to use it?" they’ll say it was their financial advisor.
There are also apps that bring things to you, such as Blue Apron, GrubHub, Peapod and Amazon Fresh. Advisors can introduce clients to this new technology by sending them a meal from Blue Apron.
Ninety percent of people say they want to age in their home, according to an AARP study. But taking care of a home can be challenging for retirees. Technology can help with chores, but also transform the home into a helper, a companion and caregiver, McManus said.
Some technologies that can help around the home include the Amazon Echo; the Roomba, a robotic vacuum cleaner; a robotic lawnmower, with sensors that avoid the cat and dog; and the smart refrigerator, which tells you what’s in the fridge and also makes suggestions on what you can cook. Other apps that will help around the house include Angie’s List, TaskRabbit and HomeAdvisor.
Retirees deal with multiple chronic conditions, even as their ability to manage those conditions diminishes. But technology can help keep family members informed about their health and monitor physical data, McManus said.
For example, there’s a smart contact lens from Google that measures the glucose level in tear fluid to help people with diabetes. A “Magic Mirror” can tell someone’s blood pressure, pulse rate, etc., based on the light reflecting off their face. A smart toilet will measure their weight and body mass. A smart carpet can detect falls and call 911.
