For many people nearing or already in retirement, working with a financial advisor can seem like an essential step toward safeguarding their financial future. However, a growing number of older adults are encountering a surprising hurdle: some financial advisors simply refuse to take on clients over the age of 65. This may feel discriminatory on the surface, but there are deeper reasons, both practical and regulatory, that explain this trend. Understanding why some advisors shy away from older clients can empower you to better navigate your own retirement planning.
Why Some Financial Advisors Won’t Work With Clients Over 65
Compliance and Legal Risks: A Key Reason Advisors Turn Away Older Clients
One of the most significant drivers behind this practice is the heightened compliance burden associated with older clients. As people age, there is an increased risk of cognitive decline, making seniors more vulnerable to financial scams, poor decision-making, or even family conflicts over money. This puts financial advisors in a precarious position.
Regulatory bodies such as the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have implemented rules to protect senior investors. Advisors must carefully document all recommendations, monitor accounts for signs of elder abuse, and sometimes even notify authorities if they suspect exploitation. While these protections are crucial, they also introduce additional paperwork and legal liability for advisors.
Some advisors simply don’t want to take on this risk. The fear of lawsuits, whether from clients themselves or from disgruntled family members, makes it easier for them to avoid senior clients altogether.
Shorter Investment Horizons Can Limit Opportunities
Another factor is the shortened investment time frame associated with older clients. Financial advisors often prefer to work with clients who are decades away from retirement, allowing them to implement long-term investment strategies that yield higher returns over time. Younger clients offer the potential for a long-term advisory relationship, giving advisors the chance to manage assets over many years.
In contrast, clients over 65 are often focused on wealth preservation rather than aggressive growth. They may prefer conservative strategies such as bonds, annuities, or CDs, which generate lower commissions and fees for advisors. Additionally, some older clients start liquidating assets to fund their retirement, which reduces the overall portfolio size an advisor manages.
For many advisors who are compensated based on assets under management (AUM), these smaller or shrinking portfolios make older clients less financially attractive from a business standpoint.
Health Concerns and Estate Planning Can Complicate Financial Relationships
Working with older clients also often involves more complex financial planning considerations. Health-related expenses, long-term care insurance, and estate planning all require specialized knowledge and coordination with attorneys and medical professionals. These complexities demand more time and expertise from an advisor.
Many advisors simply don’t specialize in these areas, or they may feel unprepared to offer proper guidance on issues such as Medicaid planning or elder law. Rather than risk giving incomplete or inappropriate advice, some advisors opt to avoid these types of clients altogether.
Additionally, estate planning often involves discussions about transferring wealth to future generations, which can raise emotionally charged issues among family members. Advisors who prefer to avoid dealing with family conflicts may choose to decline older clients whose primary focus is on legacy planning.
Cognitive Decline Concerns Lead to Tough Conversations
Cognitive decline can not only impact the client’s ability to make sound decisions but also create ethical dilemmas for advisors. If a client begins to show signs of diminished capacity, advisors face a difficult choice: Should they continue following the client’s instructions, even if they believe those decisions are not in the client’s best interest?
Many advisors are wary of the responsibility that comes with monitoring cognitive health. If they fail to act, they risk legal and reputational consequences. On the other hand, intervening too aggressively can lead to accusations of paternalism or conflicts with the client’s family.
This risk-averse mentality causes some advisors to proactively avoid older clients altogether, particularly those in their late 70s or 80s, to sidestep these difficult conversations and possible liabilities.
Some Advisors Prefer Younger, Tech-Savvy Clients
The financial advisory industry is also evolving toward digital platforms and automated services. Many advisors are now targeting tech-savvy, younger professionals who are comfortable using apps, robo-advisors, and digital communication tools like video conferencing and secure client portals.
Older clients, by contrast, may prefer in-person meetings, phone calls, and paper statements, all of which require more hands-on time and resources. Advisors who focus on scalability and efficiency may see younger clients as a better fit for their business models.
Additionally, some advisors are explicitly targeting clients who are in the accumulation phase of their financial lives—those saving for homes, education, and retirement—rather than those in the decumulation phase, where the focus is on spending down assets.
How to Find the Right Advisor If You’re Over 65
If you’re over 65 and looking for a financial advisor, it’s crucial not to be discouraged by rejection. There are many advisors who specialize in retirement planning and senior financial issues.
Look for advisors with certifications such as:
-
Certified Financial Planner
(CFP®) with retirement specialization -
Chartered Retirement Planning Counselor
(CRPC®) -
Certified Elder Planning Specialist (CEPS)
These professionals are trained to navigate the complexities of retirement income, Medicare, Social Security optimization, long-term care, and estate planning. Many also offer flat-fee or hourly consulting services, making them more accessible even if your portfolio isn’t large.
Interview multiple advisors and ask how they handle issues related to elder care, estate planning, and cognitive decline. Finding an advisor who respects your independence while providing thoughtful, age-appropriate advice is key to a successful relationship.
Why Age Shouldn’t Disqualify You From Expert Financial Advice
While some financial advisors may hesitate to work with clients over 65, this doesn’t mean seniors should go without expert financial guidance. In many cases, these advisors are simply seeking to avoid regulatory risks, complex health-related financial planning, or shrinking portfolios. However, many skilled advisors specialize in retirement-focused services and can provide exceptional value for older clients.
As you search for a financial advisor, remember that you have every right to receive professional advice tailored to your stage of life. Prioritize advisors who are experienced in retirement planning and elder care issues and don’t hesitate to ask direct questions about their approach to working with older clients.
Have you or someone you know ever been turned away by a financial advisor because of age? How did you handle it?
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