Australian advisers and brokers are delaying retirement while they build their businesses up to pre-financial crisis values.

Succession Plus CEO Craig West says the average age of business owners is 58, while 37% are in their 60s.

“To compound the dilemma of these business owners, due to their age and other factors, they are in the high-risk group for heart disease, cancers and other age-related conditions.

“With life expectancy constantly improving and today’s 50-year-olds expected to live until 82, that’s potentially about 20 years to fund after… selling their business.”

Mr West says the recent MGI Australian Family and Private Business Survey shows almost half of business owners expect to work beyond 65.

More than 33% will rely solely on the sale of their business to fund their retirement.

“Selling a business demands a strategic, long-term approach – a vision for the future broken down into the steps required to achieve that objective,” Mr West said.

“To maximise the value and potential, the exit plan is required to be implemented well in advance, allowing time for a smooth transition and any unforeseen contingencies.”

However, selling an insurance book to a young adviser or broker may not be the solution.

Mr West says young advisers are “questioning the wisdom” of buying life books and are instead considering forming partnerships to create their own businesses.

“They can build a book through joint ventures with accountants and other referral sources,” he told Life+Health insuranceNEWS.com.au.

“There are a lot of smarter, younger advisers who can grow a business organically without buying an existing book.”

Mr West says buying books can be too expensive for younger advisers.

“There are lots of accounting firms looking for joint ventures. There would have to be a compelling reason for a young adviser to buy a book.”

Mr West has published a guide to succession planning, to help advisers achieve their financial goals. It features a five-stage strategic plan.