Pinyo Sangvanangkul sees the aging population as an opportunity to target market and fulfill the needs for this client group.

What is the aging population’s main demand?

They really need peace of mind coming from the assurance of well-being for themselves and for their loved ones. That can come from having a sufficient medical fund that doesn’t affect their retirement and also having enough retirement savings to allot some money for an inheritance to pass on to their offspring.

What are the main concerns of this group of clients?

My clients in the aging population group express four main concerns. First, they want to have good health and not burden their children. In case of an unexpected turn of events, clients need to ensure they have enough to cover medical expenses without affecting their financial plan. Second is having a sufficient retirement fund to cover basic living needs. The aging population has been working most of their lives, so life after retirement should be a happy one. Third, investment diversification is important, since the aging population can only tolerate a small amount of risk. Consequently, capital preservation is vital. The common practice is to diversify the investment in different assets and instruments with acceptable risks. Finally, managing and fairly passing on assets and property accumulated throughout the client’s lifetime so that all family members are satisfied and benefit from the inheritance.

What techniques do you use that your clients feel are right for them?

You really need to talk to elderly clients in their language. It is important that your words are not too formal, and you don’t use too many teen words since the elderly clients might not understand. Present the information sincerely and directly, and tell them clearly what can and cannot be done. Provide them with all details and information so that they can make an informed decision.

What are the challenges with elderly clients?

The time available for planning is too short. Also, the money available to manage is not enough to produce what clients want to have available in the future, and there are unrealistic expectations of returns. All of these are working against the clients. The solution is to have two rounds of retirement plans. Most people in Thailand will retire at the age 60 with funds from many sources. We recommend that clients allot a portion of those funds to be used when they are 60 and put the remaining in diversified investments. Then, when they reach the age of 70 to 75, they can use the money that has been planned with us. If clients fail to make proper allotments of their available funds, they will certainly run into problems of not having enough money to last them their lifetime.

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Q&A: Pinyo Sangvanangkul