The big opportunities of 2024
Punt says advisers can play a significant role in helping clients double down on their plans by focusing on these critical components to reach their financial goals with confidence.
The two-pot system: The proposed two-pot system, which allows clients to access their retirement fund for emergencies, presents an opportunity for advisers to emphasise the importance of the retirement plan, encouraging clients to stay on track and understand the consequences of withdrawal decisions.
He says, "The more clients access their retirement funds, the more they need to replenish, potentially derailing their retirement plans. Therefore, advisers should view the two-pot system as an opportunity to keep clients focused on their retirement planning, ensuring the best possible outcomes. This doesn't negate the reality that some clients may have genuine needs to access their retirement funds. However, the goal should always be to maintain the integrity of the retirement plan as much as possible. There’s a real opportunity to reach out to and grow closer to clients through this process."
Connect with new generations: The rise of Millennials and Gen Z presents a significant opportunity for advisers to connect with new generations of clients seeking financial guidance in 2024, expanding their reach. Punt says there’s a clear need in the market, with Forbes finding that 79% of polled Gen Z and Millennials cited seek financial advice from social media.
“These younger demographics are more receptive to digital communication channels, making it crucial for advisers to establish a strong social media presence, create engaging video content, and utilise non-traditional communication techniques to cultivate connections.”
Tap into underserved segments: Sub-segmenting presents immense opportunities for advisers. He adds, “Breaking down a significantly larger market into smaller, more specific groups based on certain characteristics or behaviours allows advisers to focus on underserved segments. An example of this is tapping into younger graduate demographics that are not currently accessing financial planning services but starting to earn.”
Personalised, AI-driven digital experiences: Punt highlights the crucial skill of personalising digital experiences and how it distinguishes successful advisers in this digital age. He says artificial intelligence (AI) has the potential to enhance marketing approaches, campaign emails, and operational processes, leading to substantial improvements in productivity and efficiency. “Implementing this technology as incremental enhancements over time and integrating it in various roles among support staff can add value to advisers' practices."
Financial coaching and client relationships: Financial coaching also emerges as a valuable approach to connecting with clients and fostering enduring relationships. By integrating financial coaching into the planning process, advisers can provide personalised – but non-emotional – guidance that addresses their client’s specific needs and behaviours. “This approach can help clients make informed decisions and achieve their financial goals. For advisers, it can result in more rewarding client relationships, better client retention and optimised commercial outcomes.”
Guide clients towards smarter financial decisions: Advisers have even more opportunities to guide clients towards making smarter financial decisions this year. For example, with Gen Z's inclination towards high job mobility and 'soft saving' – prioritising immediate gratification and lifestyle over long-term financial security – advisers can provide strategic guidance.
Punt adds, “They can help these clients understand the importance of maintaining financial discipline and the consequences of their saving choices. “Offering tailored advice and creating a clear financial roadmap is crucial for advisers to assist clients in preserving their savings and investments as they navigate between jobs, ensuring personal and professional choices don't compromise their financial stability."