Behavioural, Capability, and Financial Vulnerability indicators that may point to circumstances where the client needs additional support, clearer communication, or closer monitoring. An indicator is not a conclusion that the client is vulnerable; it is a prompt for adviser judgement.
Why These Distinctions Matter
This distinction is important because many of these signals may simply be reasonable reflections of the client's current situation. For example, limited experience, near-term decumulation, low confidence, or constrained liquidity may not indicate vulnerability in themselves. What matters is whether they reduce resilience, understanding, flexibility, or ability to make and sustain good decisions.
High Level Categories
Broad vulnerability category checks. If the category is not green, it warrants further investigation and visiting the tab relating to that type of vulnerability.
How emotional reactions and decision patterns might influence investment choices.
Based on 4 of 7 available scales.
How well someone understands investments, based on their knowledge, experience, and confidence in that knowledge.
Data available
The financial cushion and flexibility available to handle unexpected events or changes in circumstances.
Data available
Vulnerability Combinations to Watch Out For
When certain combinations of factors are present, they may interact in ways worth paying attention to.
Could Take Inappropriate Risks
Limited Investing Knowledge + High Confidence: A mismatch between knowledge and confidence can lead to inappropriate risk-taking or difficulty understanding the rationale for recommended strategies.