There are more people alive today than ever before, and those individuals are living longer on average and demanding much more in their later years than any generation before them. Speaking at the 2018 Health and Wealth Leadership Forum, Joseph Coughlin, director of MIT’s AgeLab, explained how these factors are going to fundamentally change the way advisors work with aging clients.
Advisors in the near future will need to be providing much more than financial advice, Mr. Coughlin said. They will have to have conversations that help clients navigate longevity—topics like geriatric care, transportation and housing—or they risk being replaced by a firm that does. He calls it the “experience economy” where people want an advisor who can help them live happy and healthy as well as financially secure. This is especially important for wealthy individuals, who are living even longer than the rest of the population, according to Mr. Coughlin’s research at MIT.
When asked what advice he would offer advisors, Mr. Coughlin recommended they identify three experts in the fields of transport, senior housing and home modification, and make them a part of the team. Even if it’s just as a consultant, these people will help advisory firms answer the questions that will be most pressing to aging clients, Mr. Coughlin said.
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