Advancing Intergenerational Planning Opportunities is a new paper from independent analysts AKG, which Charles Stanley co-sponsored. The paper reveals that intergenerational financial planning is set to expand in importance for advice firms – but advisers recognise the need to develop skills and toolkits to deliver compelling services to clients and families.
More than half (54%) of advisers say demand for intergenerational planning has grown in the past year, with 8% saying it has increased significantly. This rises to 88% when asked about demand over the next five years, with 25% expecting significant growth. The expansion in demand however will mean a degree of change for advisers, the study found. More than two out of five (44%) are concerned about potential family disputes, while 38% are worried about possible vulnerable client concerns. A further 24% admit a lack of expertise in legal issues.
According to our Group Head of Sales, Sean Osborne: “The reasons why families are reluctant to have open conversations about intergenerational wealth planning are obvious. Many do not want to think about the loss of loved ones – and the fear of bringing conflict into the family is a real deterrent. However, the Covid-19 pandemic has started to change this – acting as a catalyst for these conversations as people look at the uncertainties the future may hold. Now feels an ideal opportunity to engage with families around some of the key planning opportunities to secure their own and their family’s future.”
AKG’s research found 59% of advisers believe greater awareness of the impact of inheritance tax is driving demand from clients, while 40% say changes in pension laws to make funds more attractive as a way of passing on wealth is adding to the growth in demand. However, more than two out of five (42%) of advisers say they are now proactively discussing the issue with clients and over a quarter (29%) say the COVID-19 pandemic has increased interest in inheritance planning and financial reviews.
The report highlights how the increased use of online meetings during the pandemic has meant that family discussions with advisers have become easier to organise and, for some, the client relationship has moved beyond the primary client to spouses and partners as well as other family members.
Sean Osborne further notes: “Adoption of new technology was accelerated by the Covid-19 pandemic and new developments will continue to impact every aspect of our lives. Financial planning is no exception. New technology should be embraced by advice givers, with hybrid advice models an ideal way to communicate with younger generations – providing more clients to access financial advice at an even earlier age. With lifetime gifting accelerating, a growing number of younger clients need access to financial advice and such hybrid models offer an ideal way to engage then in a way that makes them comfortable.”
About the research
AKG carried out research with both adviser and consumer audiences, to underpin the delivery of this research paper which can be downloaded free of charge at <insert link>. It surveyed:
- 101 advisers during August/September 2021
- 2004 consumers on 23-27 July 2021
- 19 qualitative interviews with intermediary firms
*Advancing Intergenerational Planning Opportunities research paper was sponsored by Canada Life and Charles Stanley.
Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.
Adviser skill shift required as demand for intergenerational planning jumps
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