optimism bias
‘Overestimating the probability of positive events and underestimating the probability of negative events’
We are inclined to view the world optimistically. For the most part this is a useful coping strategy, but it may lead to clients discounting or understating their health.
For example, they may tend to gloss over or present a positive spin on their medical history or any poor lifestyle choices they’ve made in the belief that these aren’t serious and won’t impact their life expectancy.
action
Carefully explain the positive impact poor health or lifestyle may have on their retirement income to encourage realistic disclosure.
Bear in mind even small differences in what used to be called ’standard’ lives can make a difference these days with companies like Just underwriting every case.