According to Equity Trustees, the industry's response to phases of retirement, including aged care, has been deficient despite the "volumes" of business opportunity.
Australians are living "longer than [they] planned", raising several issues in relation to the level of financial preparation for retirement and aged care, said Geoffrey Rimmer, head of private wealth services at Equity Trustees.
"There are volumes of business opportunity there, but I think the industry's response has been a bit deficient," he said. "The good news is we're living longer. The bad news is we're living longer."
Mr Rimmer said advisers have so far avoided business that is in pension phase because it's a "diminishing asset".
"But when you start to think about what the industry is going to look like over the coming 20 years, the way you assist people to get ready for their longevity is really going to be vital," he added.
Many advisers tend not to view the area as being particularly profitable, and are avoiding acquiring businesses focused on pension phase planning. However, there are also "significant fee charging opportunities" in this area in the future.
Anna Lawton, senior manager of aged care services at Equity Trustees, said the impacts of dealing in this space can be "hugely significant", making it important for advisers to make adequate long-term plans for their client.
"If someone wants to keep their own home when moving into care because they've got various means to do that, but it's structured incorrectly by the adviser, the chances are that person in a few years' time will have no pension and no cash flow to cover their costs," she said.
"There's lots of legislation working together in aged care, so you're dealing with the Social Security Act, the Aged Care Act, and you have to calculate all the fees and charges and so forth - there's a lot to consider."
Ms Lawton said it's an area that is easy for advisers to get wrong if they are not specialists, adding that it can also be an additional challenge to handle the emotional aspects of estate planning.
