The financial capability of older people (original) (raw)

• About the report and the problems being explored • Older people's financial capability using homecare packages • Older people's financial capability in choosing between different financial products and services Budgeting and Making ends meet B 1.2 Resolving Problems B 1.3 Choosing a bank or financial adviser B 1.4 Lack of knowledge of products, services, fees and charges B 2 Inhibitors and facilitators of financial capability B 2.1 Administration of financial services providers and call centres B 2.2 Perceived value of the services provided by banks and financial advisers B 2.3 Trusted friends and/or relatives B 2.4 Communication B 3 Motivations and attitudes B 3.1 Physical needs B 3.2 Maintenance of physical and financial independence B 3.3 Previous experience and desire to avoid waste B 3.4 Fear of the future and lack of health and vitality B 4 Summary Solutions on homecare packages Solutions on financial decision-making, products and services Executive summary About the report and the problems being explored This report outlines the findings from research into two financial capability contexts, firstly, the financial capability of older people and their management of home-care packages and, secondly, the challenges older people face when choosing banking and financial products and services. In the first context, we interviewed 31 men and women aged over 65 years and asked them about the establishment and day-today financial management of their home care package. In the second context, we interviewed a further 31 men and women aged over 65 years and asked them about their experience in choosing financial products and services offered by the financial services industry. Such products and services include banking services and financial advice, bank, savings and investment accounts, credit cards, loans and life insurance. We also interviewed a small number of representatives from home care package providers and financial institutions. While a home care package may be regarded as a type of financial product, they are treated separately in the research due to it being a different context. The findings of the research discussed herein are based on the recollections and memories of those interviewed. Older people's financial capability using homecare packages The environment in which packages are provided and the structure of the Consumer Directive Care (CDC) system can have a significant impact on a person's financial capability. A key need identified by older people was the need for training in and assessment of their financial capability to help inform better decision making. They also identified several shortcomings that, if addressed by providers, could lead to gains in financial capability. These include improved customer/provider communication (for example age appropriate language, simplified terms), greater transparency and accountability on fees and charges, and more accurate billing processes. In the latter case, charging errors were commonly reported pointing to the need for more effective accounting systems. It was also identified that simpler fee structures and improved communication would also assist and reduce the administration costs to providers. Older people identified the need for greater face-to-face contact between staff and customers, greater access to services at a greater range of convenient locations (for example, longer opening hours and more bank branches), and deeper community involvement (for example, providing community seminars and financial capability training). They also identified the need for improved customer relations training when dealing with older people. Some suggestions to improve communication (for example, the establishment of call centres manned by older people with loud clear accents), encouraging the banking and financial services industry to adopt common terms and conditions (in addition written in plain language using large print), and the more careful targeting of financial products (for example, funeral insurance and health insurance policies tend to be indiscriminately marketed to older people).