Financial investments and the elderly

The february 22, 2023

Nowadays, as life expectancy increases, the ageing of the population is significant and this has consequences for all professionals in the financial world. On 1 January 2020, 20.5% of the French population was aged 65 or over, and it is predicted that this figure will rise to more than one in four by 2040. Since this population holds half of the overall financial wealth in France they need very important support.

Points to watch out for:

Of course, this part of the population is completely autonomous like each of us, except in specific cases. However, health problems can affect physical or cognitive capacities and make people more vulnerable. These clients are therefore legally capable, but must nevertheless benefit from increased vigilance. This is why the legislator expects greater attention and vigilance for all operations carried out by these clients.

The risks for advisers are multiple. They could be accused of mis-selling, abuse of weakness if the client is not considered suitable. But there is also the risk of being accused of discrimination if the client's wishes are not respected even though they are legally capable. Finally, the last risk for a counsellor is losing the client due to dissatisfaction.

What solutions are in place?

In banking institutions, it has been decided to put in place a stricter administrative framework to secure every step taken by a person of advanced age. Specific forms have to be filled in and some banking departments closely monitor the operation of the investment. This makes the process more cumbersome and sometimes generates dissatisfaction because of the incomprehension of clients faced with so many constraints. And unfortunately, this does not solve all the problems because, for a client who is said to be vulnerable and under the defined age, nothing is provided. In fact, we encounter cases where the sale of products or services can be considered inappropriate or even abusive.

How can we best support these customers?

A study financed by the European Union and directed by the University of Paris-Dauphine and Science Po Paris proposes several solutions. They are based on two major axes: time and training. Time, because it is essential to adapt to the interactional needs of these clients and to establish a professional relationship that is qualitative, lasting and marked by trust. Training, because for complex solutions, it is necessary to master both the product in question and the pedagogy necessary for the client's understanding.

Both of these recommendations face obstacles in the banking sector. Indeed, the existing turnover in the workforce and the productivity requirements in bank branches are obstacles to this practice.

This loyalty and constancy exist. In these circumstances, it is essential to be accompanied by a trustworthy professional. Wealth A7, a wealth management firm for more than 15 years, can accompany and advise you, contact us!

In a changing world, Wealth A7 is there to bring your wishes to life.


Article by : STEPHANE SAES

Request for consultation

32, rue d’Alsace Lorraine 31000 Toulouse


Phone : +(33) 6 27 36 33 53 -