In this session we will look at how you can help clients to put first things first when it comes to future spending patterns. There has been some debate around the importance of capacity for loss, particularly in retirement. But one thing is clear; when it comes to retirement dreams and aspirations, it is imperative to look at the ‘non-negotiable’ aspects of income needs at outset – and how these might change. Establishing this amount may not be too complex in many cases, but perhaps it’s simply more a common-sense approach of putting first things first. Here we will look at how you can help clients to take a realistic view of what their retirement needs are and we’ll be asking Rory Percival for some key points on how to look at this area objectively. We’ll then look at establishing a hierarchy of needs and the sort of questions to get us there.
Learning Objectives:
1. Recognise the importance of capacity for loss
2. Understand how capacity for loss differs from attitude to risk
3. Develop a process for establishing a spending hierarchy
4. Understand the impact of behavioural biases in the early stages of advice
5. Establish an objective approach to retirement planning
6. Recognise the role of secure and flexible income