Advisers urged to reassess communications with retirement clients to build trust

Financial advisers often use language that triggers distrust, anxiety, and disengagement among retirement clients, and should reassess their communications to prioritise personal situations rather than products, according to Oxford Risk and NextWealth.

The firms conducted consumer interviews and adviser workshops to understand how communications with retirement clients were affecting their confidence.

It found that product-led communications were one of the ‘clearest drivers’ of mistrust among retirees and near-retirees.

Those who felt advisers led discussions with investments rather than their personal situation tended to feel less understood, less engaged, and less confident in their retirement plans.

The report also stated that common adviser language may be undermining client confidence, with phrases such as ‘you’re not locked in’ often seen as “patronising” rather than conveying flexibility as intended.

Oxford Risk and NextWealth highlighted that retirement communications often worked best when addressing emotional needs in the order of financial security first, followed by investment growth and flexibility.

The firms found that clients responded better to messages that acknowledged their situation before introducing solutions, as well as fewer messages that tried to do everything at one.

More evidence-seeking clients responded better to visible proof and clearer explanations, while anxious consumers benefited from calmer, simpler language.

"Too much retirement communication still starts with products rather than people,” commented Oxford Risk chief behavioural scientist, Greg Davies.

“Language, framing and sequence matter far more than the industry often assumes.

“Advisers spend enormous energy building solutions, but if clients do not feel understood, supported and emotionally comfortable with the plan, they are less likely to stay engaged with it.

“In retirement, communication is not a soft extra. It is part of delivering an outcome people can live with."

NextWealth consulting director, Emma Napier, added: “What made this project so distinctive was bringing together very different groups - end clients, advisers, and product providers - with one goal to create genuine understanding across those perspectives.

“At its heart, it was about connection. The shift in thinking, reflected in the retested messages just shows what's possible when you design research around real human connection.”

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