Financial planning needs to evolve as the 100-year life becomes increasingly common and 45-75 year olds redefine later life, a report from RBC Wealth Management has argued.

It highlighted that financial advisers’ clients are living longer, staying active deeper into retirement, and carrying wealth for periods that could exceed 30 to 40 years post-retirement.

RBC said this fundamentally changed the nature of financial planning from wealth preservation to a much wider discussion.

In partnership with YouGov, RBC surveyed over 5,600 UK adults aged 45-75 with more than £2,000 in investable assets and found 72% felt younger than their actual age by an average of nine years.

More than half (57%) said they had a clear sense of purpose that motivated them to stay financially disciplined, while 53% said it gave them the drive to take care of both their health and finances.

However, 18% had not set aside time over the past 12 months to consider their finances, while 25% were doing so just once or twice a year.

With 13% believing it was likely they would live to be 100, RBC argued that financial strategies and retirement planning must evolve to keep pace.

Women were found to be more determined to make the most of their later life, although they were less confident about the financial planning needed to support their goals.

However, priorities were often being shaped by life events rather than proactive planning, with 83% of respondents having experienced an event that prompted them to reassess their health, finances, or sense of purpose.

RBC Brewin Dolphin head of intermediaries, Ian Kloss, stated: “Traditional thinking may be that health is just for the doctor’s surgery and has no connection to financial planning. But our research shows that this might be an outdated way to think about it, as people are considering how they can live well for longer.

“Two-thirds of people tell us that financial security makes it easier for them to prioritise their health, and that improving their health makes them feel more motivated and satisfied with their lives.

“Health scares, as it turns out, are also the most common trigger for rethinking financial priorities. So, health and wealth are increasingly connected.

“Firms must now think about how we can support advisers in helping their clients take a more holistic approach to planning, bringing together their finances, health and sense of purpose - so they can make the most of the extra years ahead.”

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