Protect and diversify for over 65s

In Italy, 80% of the assets managed by private banking are in the hands of clients over 65. This single figure, which in absolute value corresponds to a figure equal to 1,257 billion euros, is enough to give an idea of ​​how important the investment strategies designed for those who have already stopped working (or are preparing to do so) and can count on a wealth that in some cases is also very significant. "For those over 65 - explains Antonella Massari , general secretary of Aipb (Italian Private Banking Association) - managing wealth no longer means just seeking returns, but protecting what has been built, planning for the future and ensuring an orderly generational transition".

The lengthening of the average lifespan is the key factor to take into consideration when planning strategies for this type of customer, who are not always aware of the complexities that it brings with it. According to a survey conducted by Aipb in collaboration with Kpmg , only 20% of private families have adopted structured financial planning solutions , while 60% still declare themselves little or not at all concerned about the economic impact of a longer life. Yet, over half of families (57%) know that the public pension will not be sufficient to maintain their lifestyle and indicate among the main solutions for integrating future income personal investments (58%), other sources of income (48%) and supplementary pensions (39%).

The picture that emerges from the Aipb survey is one of growing sensitivity, but also of a certain inertia: families are aware of what awaits them, but do not take concrete countermeasures. “In this context - continues Massari - the role of consultancy becomes crucial: helping to bridge the gap between intention and action, transforming the positive attitude towards the future into effective and sustainable strategies over time. As often happens, facing complex and long-term choices alone is difficult”. An emblematic example of this difficulty is the level of pension awareness in the generations approaching retirement . In the 45 to 50 age group, who will leave work in 2045, only 9% are truly aware that they will receive a pension equal to just 46% of their last salary.

Yet, 58% consider personal investments a useful tool to supplement future income : an important basis to work on, which however poses significant challenges, because the willingness to activate plans with a very long time horizon remains low (only 15% among under 45s and 22% among 45-50 year olds). The solutions proposed today by private bankers for the over 65s follow three principles: increase investment protection through supplementary pension and insurance products, improve diversification and extend the time horizon by planning multiple path objectives.

"Investment strategies for private clients over 65 can no longer be built around individual products, but must be based on a 'goal-based' logic , founded on life objectives and progressive adjustments over time - concludes the general secretary of Aipb - In this vision, the composition of the portfolio takes on a dynamic role: it starts with a greater exposure to equities, more suitable for the initial phases of management and growth of assets, to then gradually reduce the risk as the age advances. To effectively extend the investment time horizon - one of the main levers for addressing longevity risk - it is necessary to look beyond traditional markets and progressively integrate alternative instruments such as private markets and private debt . These instruments, often less liquid but more stable in the long term, offer a valuable contribution to the resilience of the portfolio and better align financial choices with the real life span".