Faced with growing challenges that include market volatility and inflation, financial advisors are transforming the ways they guide clients on their retirement journeys by offering a wider range of investments, encouraging investment education, and more.
A new study by Ernst & Young analyzes how advisors are navigating their clients through an environment marked by layoffs, market swings, and an impending downturn. The 2023 outlook report discusses how advisors can lead their clients with new retirement strategies during an uncertain period, finding that removing internal silos and simplifying their systems is key to providing specialized offerings.
The EY outlook lists several areas of focus, including democratizing retail investment by opening alternative investments to semi-professional and approved retail investors. Additionally, EY says that private market platforms who provide secondary liquidity and trading windows within a longer investment period will also continue to see strong growth, and direct indexing can give more investors the types of portfolios that were previously only available to institutions or the very wealthy.
Another area where advisors can institute change is by “consumerizing” institutional investing, such as constructing client personas for pension trustees or investment consultants and
creating new client experience roles focused on institutional investors for the first time, says EY.
Financial advisors can also improve generational focus by helping their clients save for retirement through elevating investment education and financial inclusion. This can be done by digitally educating end investors through the use of gamification, for example. EY emphasizes how creating a deeper understanding of investor views and preferences, along with education, can align their investments with purpose.
More findings from the study can be found here.
SEE MORE:
- 70% of Advisors Find Inflation is No Match for Small Plan Retirement
- Inflation, Market Uncertainty Could Trigger a 2023 Recession
- Institutional Investors Predict ‘Inevitable’ Recession for 2023
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
