"If all firms follow the Consumer Duty rules, arguably, we would have a much healthier industry and happier customers."
When it comes to the promotion of financial products and services, how well are they targeted to specific age ranges, particularly the 50-90+ age group?
In our latest survey we asked over 2,000 people aged 50 to 90 their views on financial services. To summarise many thought the financial services industry did not cater for them, was patronising and there was a certain amount of fear and mistrust.
Respondents were asked: “Do you think that the way financial products and services are promoted or targeted to people your age are appropriate?”
Only 7% said yes, 14% said no and the vast majority of 79% were unsure. Of those who said yes, the general view was that if you go to the right people then you should get the correct advice. They cited specialist websites such as Saga or relying on advice from the likes of MoneySavingsExpert’s Martin Lewis. But that leaves 93% who did not feel positive about the way the financial services industry targets them.
Negative comments
This survey question resulted in hundreds of comments from respondents and many were negative - here are some examples:
• My generation seems to be the forgotten generation
• Financial institutions are patronising and condescending
• I am treated like I am stupid
• They think I don't have a brain
• They think we are past it
• They all think we wear cardigans, talk about gardening and are ready for the grave
What this boils down to is the feeling that financial services companies do not address the real issues facing people of a certain age – the word ‘ageist’ was used a number of times. Firms have not changed to meet the financial needs of a society where people are living longer.
Mistrust and vulnerability
Another message that came through loudly and clearly was one of trust – or rather lack of it: “I don't trust them and they don't act in my best interests,” said one respondent while others felt that advisers were “just looking for commission” and that was more important than the customer.
Sales tactics were also mentioned: “They target worries and fears... too complicated with high flying words… too technical and confusing for me… too much pressure and jargon... they do not fully explain the risks.”
This brings into play vulnerability as one person said: “It just underlines the fact that as you age the more vulnerable you are.”
Vulnerability is a big part of the new Consumer Duty rules which aim to ensure that financial firms act in the best interests of their customers. Key issues being that customers are provided with clear and accurate information about financial products, and that they are not subjected to unfair practices or hidden fees. In particular firms must identify vulnerable people in order to serve them better.
Our survey highlighted some of these issues and they are of real concern to people. But if all firms follow the Consumer Duty rules, arguably, we would have a much healthier industry and happier customers.
Poor advertising
Part of the marketing mix within firms is advertising and this also got some stick from our survey respondents. One person summed it up: “Everybody's financial situation is different but advertising is aimed at the mainstream.”
Financial services firms, particularly lenders, must design products and marketing that is age appropriate. Another person said: “Over 50s advertising makes me feel like I should act like I'm 80!”
It really annoyed some of our respondents that advertising to anyone past 50 was either life insurance or equity release. There are other options such as a mortgage – yes, that’s right, mortgages can be suitable for many people aged 50 or even 90.
With specific regard to mortgages, one person said: “I feel invisible, not old enough for a lifetime mortgage, not rich enough for fixed rate mortgages on the market, I have no help from anyone.”
People should not have to feel like this which is why LiveMore was born. We are trying to change that stubborn mindset and shout from the rooftops that anyone aged 50-90+ should have the opportunity to take out a mortgage and live the life they love and deserve.
