What will the legal services market look like in 2025?

A new report argues that demand for legal services will dramatically change with an ageing population and the decline of the nuclear family.

Later retirement, changing family structures and longer life will all carry their own unique legal challenges. Cathy Yeulet

There’s no shortage of chatter about the more exciting future legal landscapes, from the evolution of AI technology to the rise of automated ‘robot lawyers’. However, a new report from 11-partner firm Barcan & Kirby has taken a more kitchen sink approach to envisioning the law industry of the future. Rather than jetpacks or robots, it will be an ageing population, later retirement, the decline of home ownership and the rise of alternative family structures that most dramatically alter the legal landscape by 2025, the report argues.

According to the report, entitled 'Citizen 2025', employment contracts and laws will need to be fundamentally reworked as an emerging population of ‘grey go-getters’ opts to stay put in the workforce past traditional retirement age. Meanwhile, younger workers may find it difficult to gain a foothold in the job market as older and more experienced workers create traffic jams at the top. The result may be a spike in legal work brought by employers. ‘Contracts will need to change. While this shift doesn’t need to be a big deal, employers will need to plan for it and ultimately adapt,’ said Barcan employment partner James Bell.

Meanwhile, a population that lives longer is likely to throw a spanner in the works of several key ‘life milestones’ and their associated legal needs. As the number of UK citizens suffering from dementia grows to 1 million by 2025, so too will demand for powers of attorney. And as rotation through the housing market becomes even more stagnant, multi-generational living and friend buddy-ups are likely to increase and a ‘renting renaissance’ will take place, generating a need for creative legal purchasing and ownership arrangements for real estate and enhanced legal protections for tenants.

Inheritance and estate management is also about to get a whole lot more complicated. The rise in later-life divorce combined with the growing preference for younger couples to sidestep marriage altogether will fundamentally alter the landscape for divorce lawyers. Meanwhile, with the annual average cost of comfortable retirement in the UK around £35,000, more and more retirees will likely spend their savings and their children’s inheritance in order to maintain their lifestyles, creating complications for estate management. Fewer children and later-life family starters are also set to challenge the traditional nuclear family as the point of reference for family law.

As the legal landscape changes, it will be on lawyers to envision creative solutions to the evolving demands of clients. Far from being rendered irrelevant by the rise of automated legal services, real-life lawyers can keep their value so long as they roll with growing diversity of clients’ legal needs and tailor their services accordingly.

‘The younger generation are likely to shop around and are less loyal and committed to their relationships with their legal advisers. But will they value a more understanding, personal service as they grow older, acquire more assets and want to start protecting them? I believe there will always be a role for the personal service adviser, although we will need to find new ways of communicating with clients who may want instant responses,’ writes Barcan managing partner Chris Miller. Sources: Legal Futures; Barcan & Kirby

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