Planners specialising in clients most like themselves

Financial planners who specialise are increasingly doing so in demographics which align with their own ages, according to Investment Trends.

Investment Trends’ 2017 Retiree Planner Report, which surveyed 459 planners, found that more planners were specialising the age demographics their advice focused on, with a high correlation existing between their focus and own age.

“Planners are increasingly carving out specific niches in the market and often times these niches look like themselves,” Investment Trends research director, Recep Peker, said.

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He pointed to Millennial planners, who account for 38 per cent of the total planner workforce, as evidence of this.

Of this demographic, 32 per cent were primarily focused on clients in the accumulation phase in 2017, being the group that most reflects themselves. This was up from 25 per cent in 2016.

Overall, 26 per cent of all planners were accumulation focused last year, which represented 17 per cent of the total funds under advice (FUA) from financial planners.

Eleven per cent specialised in pre-retiree clients, accounting for 10 per cent of FUA. Thirty-eight had a retiree focus, which was the biggest segment of all with 48 per cent of FUA.

Under the research house’s methodology, to be a ‘focused’ in an area, clients belonging to that segment must have made up at least 50 per cent of a planner’s practice.




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