In the September 2024 issue of Wall Street Italia, Massimiliano Volpe’s interview with Maurizio Primanni, CEO of the Excellence Group, on ‘Life goals and new Mifid questionnaires’
To maintain an adequate standard of living in the fourth age, it is necessary to save more and increase stock investments, especially because, in the future, we will live longer, and this will require greater financial resources. As proof of this, just think that the life expectancy of Italians, at 65 years of age, is almost 21 years compared to 15 in 1974 and, according to an analysis by KPMG, will continue to grow. Therefore, it will be necessary to save more and maximize investment returns by increasing the equity component in portfolios for a longer period.
In this context, however, it must be underlined how this opportunity clashes with the investment profiles of savers defined by the Mifid questionnaires, which limit the share component held in the portfolio once a certain age has been reached. What to do? This issue should be addressed with your consultant.
According to Maurizio Primanni, CEO of the Excellence Group, no one is yet addressing these issues seriously: “The solution lies in changing the approach to the fourth age, the one ranging from 75 to 84 years. It is the financial advisor who must take the initiative with the customer, guiding them beyond the current paradigm based on the pension gap”, says Primanni.
It is necessary to think about the client’s life goals and plan in order to have a happy fourth age; but you shouldn’t wait for retirement, because you need to plan ahead and address the issue from the age of 50-55. It should also be underlined that planning can also be managed with solutions such as unit linked, which allow automatic switches between stock and bond funds.
Looking overseas, we see that in the United States the market anticipates these trends: the financial consultancy firm Ameriprise, for example, offers a financial check-up that helps savers understand where they are in their financial journey, allowing for more efficient planning. effective for a happy fourth age.
Another solution proposed by Primanni is the revision of the Mifid questionnaires, differentiating them between retail and private customers. Private clients, having greater skills and risk tolerance, could hold a greater share of equity investments for a longer period; because time, in finance, always works in favor of those who use it correctly.
