Unexpected trends to look for in 2022

The pandemic has etched unexpected deep lines in the landscape of many people’s professional and personal lives.

Financial advisors in the past few years have likely seen this in some of the trends emerging when working with clients. The most obvious may be the acceleration of technology, both in communicating with clients and more automated and paperless processes. Not all developing trends may be as apparent, though, and some may be the result of the new set of circumstances caused or hastened by the pandemic.

Generational transfer of wealth

Michael Christian Advincula, a four-year MDRT member, noticed the pandemic pushing baby boomers into early retirement, potentially leading to the transfer of personal wealth to younger generations. “Financial advisors should establish relationships with the younger generation and understand how to serve them best, as they’ll have growing purchasing power as a result,” said Advincula, of Makati, Philippines.

“For example, the younger people have seen how severe the impact of the pandemic was not only on them but on their grandparents’ generation as well. However, how well do they understand the potential effects of the pandemic on their retirement years?” Advincula asked.

Rise of small businesses and gig economy

“Since many people lost their jobs because of the pandemic, many individuals put up small businesses or provided freelancing services to build streams of income,” Advincula said. Financial advisors should consider how insurance can help these entrepreneurs and gig workers. “They may have the money to invest, but they don’t have the corporate insurance protection that employees enjoy, making it a market worth looking into.”

Ariana Ubina is a writer for Team Lewis. This blog post was excerpted from her article “2022 trends forecast by Filipino financial advisors.”