Some financial advisers may be inadvertently using language that is triggering distrust among clients approaching retirement, according to a new study.
Product-led communication was one of the clearest drivers of mistrust among retirees and those approaching retirement surveyed for Oxford Risk and NextWealth’s ‘Mind Over Money’ report.
Some clients surveyed for the report felt that advisers who led with investments, rather than their personal circumstances, felt less understood, less engaged and less confident in their retirement plans.
Phrases which appeared to backfire with clients included:
- “You’re not locked in” – which clients found patronising
- “Scary markets” – triggered fear rather than reassurance
- “Higher risk” – created immediate worry even among those open to growth-focused investments
Clients surveyed for the report were also highly sensitive to tone.
Words like “steadier” were preferred to “steady” because they acknowledged uncertainty without overpromising.
Greg Davies, chief behavioural scientist at Oxford Risk, said: "Too much retirement communication still starts with products rather than people. 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."
‘Mind Over Money’ research was conducted in December by NextWealth in partnership with Oxford Risk. The research involved 12 in-depth consumer interviews, five UK-wide adviser workshops held in London, Birmingham, Bristol, Manchester and Leeds, and eight follow-up consumer interviews to test whether revised communications moved the dial on client confidence and clarity.