A “shift in client profiles” has presented an opportunity for financial advisers to help emerging groups of retirees, according to Canada Life.

The retirement expert suggested that over 50% of people are no longer retiring in the “usual way”, and that retirees today who are predominantly targeted and catered for by advisers are growing smaller as a customer group.

Classed as “financially mature and stress free”, Canada Life said this customer group, which used to represent almost a third of the market, has already contracted by 25% since 2010, with this trend expected to continue over the next 15 years.

Retirees in this group can be categorised as having very comfortable levels of wealth and health built up over a lifetime of good fortune in employment and family life.

The research showed that these retirees currently make up around 21% of the retirement market, and that advisers have built their business models to cater for this group.

Canada Life suggested the decline of the group can be attributed to societal changes such as fewer people having defined benefit pensions, as well as the declining prospect of home ownership for a generation of renters.

“As an industry we have already witnessed a significant shift in client profiles over the last decade and this trend is only going to accelerate,” said executive director at Canada Life’s Wealth Management Division, Sean Christian. 

“We need to continue to understand these changes as we work to better support advisers to help these emerging groups of retirees who will dominate the market in the coming years.

“Advisers are perfectly placed to balance the needs of clients today and consider how the more complex retirement journeys of the future will shift how they support and guide a future generation of clients.”

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