Four Emerging Financial Trends for Older Adults
Older adults are focusing on new financial strategies to ensure security in retirement. Rather than simply drawing down on their investments, many people are looking to build wealth well into their later years. From diversified income streams to technology-based financial planning tools, companies are responding to market needs by creating products and services tailored for these exact priorities and goals.
Money is Personal
One notable trend is the rise in personalized financial planning specifically for older adults. Edward Jones, a storied financial services firm, offers dedicated advisors to help develop retirement strategies that address income longevity, healthcare costs, and estate planning. Recognizing that retirement varies greatly in its form and length for different people, these plans incorporate investment strategies that account for risk tolerance and income generation in later years. Many advisors focus on helping clients create passive income through dividend-paying stocks and other investments that offer returns without requiring active account management.
The Rise of Real Estate
Additionally, real estate is becoming a popular asset class for those seeking financial stability and growth. Platforms like Fundrise and HappyNest are democratizing real estate investing as an option for those looking to diversify their portfolios without needing large amounts of capital. For many people, this provides a way to participate in commercial and residential real estate projects that can generate passive income and potentially appreciate over time. Platforms like these simplify access to a complex market, allowing the creation of wealth beyond traditional stocks and bonds.
Digital-First Solutions
Digital banking and investment tools are also gaining traction. Yorba helps users gain greater control of their finances by “decluttering their digital life.” The service cancels forgotten subscriptions and online accounts to ensure that people are not paying for services they don’t need or that they no longer use. According to the company website, the average internet user has more than 220 accounts, many of which may cost them money every month.
SilverBills is a service that helps older adults manage recurring bills by organizing and automating payments, which reduces the stress of financial management. This, paired with other budgeting and financial tracking apps like Pocketguard, enables users to stay on top of their finances, especially as they juggle fixed incomes and varying healthcare costs.
Annuities & Insurance
Another interesting shift is the use of annuities and other income-generating insurance products. New York Life offers annuities tailored for those nearing retirement, providing options that guarantee monthly income for life. This approach, while potentially expensive to maintain, might be of interest to anyone concerned by market volatility, as they provide predictable returns regardless of economic conditions.
These trends highlight a more dynamic approach to financial planning in later life, moving beyond traditional savings accounts, 401Ks, and pensions. Companies focusing on the needs of older adults offer products that not only protect but also grow wealth, helping maintain financial independence and security well into retirement.
———
Important note: Amevida has not been compensated by any of these organizations.
This post is for informational purposes only and does not constitute financial advice or endorsement or recommendation of any product or service mentioned herein.