Advisers must encourage their clients to keep investing through the downturn as savings alone will not provide for an adequate level of income in their retirement years, according to US financial services educator Don Connelly.
In particular, advisers must not let their clients use the global financial crisis as an excuse either not to start or completely stop their investment activities.
"The biggest investment mistake is not starting. The second-biggest mistake is not going all the way," Connelly said.
"Everybody's always looking for reasons not to invest. It's not necessarily fun to invest, it's fun to spend money. So this [the global financial crisis] is not a good start, or if you have started it is a good reason to stop and the adviser can't allow that."
Many people currently have large cash reserves as a defence against the downturn and a savings mechanism, but Connelly said advisers had to convince their clients that savings alone will not provide for a comfortable retirement.
"You can't save the amount of money you need. We just don't do it ... we have to invest our money whether we like it or not," he said.
However, Connelly stressed it did not mean individuals had to invest in equity markets.
Before being able to give people this kind of guidance, financial planners need to make sure they have a solid relationship with their clients, Connelly said.
