Clients are concerned about wealth transfer
Transferring wealth between generations is as important to clients of Financial Planning firms as retirement, a new study reveals.
Research among senior leaders at Financial Planning firms showed that intergenerational wealth planning was picked by 31% as the top priority, the same as retirement and estate planning.
That was more than tax planning and mitigation, such as managing capital gains, which was cited by a quarter (25%) of firms as a core client concern.
Some 7% of firms said clients were seeking help to deal with increases to private school fees, while a minority (one in 30) were considering the financial implications of relocating abroad.
The research was published as part of the Financial Planning Growth Index from Financial Planner and wealth manager Saltus and LEK Consulting.
The report also found that to meet changing client needs, firms were placing emphasis on improving operational efficiency (22%), and enhancing the client experience (20%).
The strategic priorities reflect a shift toward optimising service delivery and ensuring current and future clients receive a smoother, more personalised experience, the study said.
Nick Heath, head of the Saltus Partnership Programme relationship team, said:
“The financial advice profession is undergoing a major evolution, driven both by client expectations and the possibilities created by new technology.
“The pace of technological change we are seeing at present presents challenges and opportunities for firms, and many need additional support to address both - whether through the implantation of scalable technology, regulatory support or investment in client experience.”
Bronswe Cheung, partner at LEK Consulting, added: “We are now seeing the impact of baby boomers retiring on outflows across the market, and the fact that intergenerational wealth planning is a top priority for advice firms and their clients reflects this.”
• The report was based on a survey conducted from October to November 2024, with a sample of 200 respondents in senior positions at Financial Planning firms of various sizes.
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