Use the next few weeks wisely to make 2023 special

As we move into December – and I can’t quite believe I’m writing that – it is an obvious point to make, but the market does tend to quieten down as we begin to get into the holiday spirit, take in a few parties (I hope) and prepare for the Christmas break.

However, that move into December does provide an opportunity to put in some serious leg work now that will allow later life advisers to hit the ground running in 2023 and secure a serious competitive advantage.

I say that in all seriousness, because while things are a little big quieter in our sector, the chances of them staying quiet in 2023 in my opinion are very small indeed. In fact, if you forced me into a prediction about what is to come during the next 12 months, I would say more consumers are going to be looking to the market for support than ever before. And advisers need to have done the groundwork to be ready for this.

For a start, my belief is that demand for later life lending is only going in one direction, and that is upwards.

That in itself is going to require serious consideration from later life advisers about the type of consumer demand it will be, and what it will mean in the scope of providing advice in this space. Chances are for many it will be a pressing demand need borne out of the current economic situation, coping with it, and helping those nearest and dearest to the client to cope with it too.

It's why we’re seeing an increase in older borrowers looking at the ways and means by which they can utilise, what is likely to be, their biggest asset in order to potentially pay off more expensive debts, to meet an increase in monthly outgoings, to help family members, to bolster pension income, etc.

Never before have we had such a situation where so many older people are living in homes with significant amounts of equity that they are able to access and make use of, and that will require a great deal of time, effort and thought from advisers about the advice they give and the options they proffer.

From a business perspective, soaring demand is of course good news, and I know we have a highly professional advice community who are valued particularly by older consumers, and who will do everything they can to meet their needs and provide the positive outcomes they seek.

However, there is of course, much to take on board working in this space – potential customer vulnerability being high on the scale, as will the reaction and inclusion of family members, not forgetting the Consumer Duty measures which will need to be met during 2023.

Firms do have the opportunity however to make sure they cover everything above and to make sure they are in the best possible shape to deal with this increased consumer demand.

These next few weeks provide firms with the opportunity to review processes, to look, update and optimise websites if required, to ensure their introducer relationships are fully-formed and delivering, to enhance their lead generation channels, to work on their marketing and advertising, to outline the training and CPD requirements, to name but a few, in order to make sure you are able to hit the ground running from the start of 2023 right through the year and beyond.

In that sense, you have two options. Switch off now and go into full holiday mode, or get ahead of the competition, and reap the rewards next year of the work you and your team carry out in these next few weeks.

There’s no argument to be had in my view that the growing demand for later life lending is going to continue next year – and it is the work done through the rest of 2022 which will go a long way in preparing advisers and their firms to secure as much of that increase as possible.

This is a wonderful and exciting sector to be involved in, because of the foundations and the fundamentals that will draw consumers to it. Make sure your business is already in the shop window when that growing older borrower base does come calling.