Why we need to change the way we talk about money

Money affects almost every part of our lives, yet for something so important, it can still be surprisingly difficult to talk about.

That was one of the themes to come out of our recent Living More panel event at the RSA, where Joanne Hart, Investments Editor at the Mail on Sunday, joined the conversation around the future of later life lending.

Following the debate, Joanne sat down with us to reflect on what she had heard and what needs to change if the industry is going to help more people understand the options available to them.

Customers need solutions, not product labels

One of Joanne’s biggest takeaways from the discussion was the disconnect between how customers think about their needs and how the industry often approaches them.

Customers are looking for a way to achieve something. The industry, meanwhile, can approach that need through individual products and categories. Joanne described this as the difference between a siloed industry approach and the more holistic approach customers actually want.

For customers, the terminology surrounding those products can make things even more complicated. Retirement Interest Only, equity release and the many acronyms used across financial services may be familiar to those working in the industry, but that doesn’t mean they are familiar to the people who need them.

Cutting through the jargon

As Joanne put it during the conversation, jargon gets in the way of good communication.

When terminology becomes second nature to those working in financial services, it can be easy to forget how unfamiliar it sounds outside the industry. Joanne highlighted that even commonly used terms such as equity release may not be properly understood by customers.

That presents an important challenge. If people don’t understand the language being used, it becomes harder for them to understand their choices.

Making later life lending more accessible therefore isn’t just about offering a range of options. It’s about explaining those options in straightforward, everyday language.

Better education can lead to better conversations

Education was another recurring theme throughout the panel.

Joanne spoke about the lack of awareness around the range of financial options available and the stigma that can sometimes surround decisions such as taking out equity release. The discussion also touched on situations where customers reach the end of an interest-only mortgage without being prepared for the capital repayment required.

Better financial education has an important part to play here. The more people understand their options earlier, the better equipped they can be to have informed conversations about what works for their circumstances.

But that education needs to feel accessible too. People shouldn’t feel as though they need to read a textbook on mortgages just to understand what might be available to them.

Making conversations about money more human

For Joanne, the answer comes back to simplicity and accessibility.

Her advice to brands was clear: reduce the jargon, use everyday language and remember that talking about money can already be difficult for many people. She also highlighted the importance of the industry becoming more personable and approaching conversations from the perspective of what customers need.

For later life lending, that shift matters.

Rather than starting with a product, we need to start with the person, their circumstances and what they’re trying to achieve.

Because ultimately, a mortgage isn't the goal. It's what that mortgage enables someone to do with their life that matters.

Watch the full conversation with Joanne Hart as part of our Living More series.

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