73% of financial advice clients in the UK are over 50, Fintech Finance reports.
This makes sense – those approaching retirement have likely reached the peak of their wealth accumulation and have the most complex financial needs as they prepare to finish work for good.
But if you are looking to expand your clientele and help ensure your career enjoys the longevity it deserves, you could be missing out on untapped potential within your existing client bank.
The Great Wealth Transfer will see up to £7 trillion passed down in the next 30 years
Over-60s hold more than 50% of the property wealth in the UK, as opposed to under-35s, who account for less than 6%, the Independent reports.
As the over-60s age and eventually pass away, their estates will be distributed among their children and grandchildren, who will likely make up the millennial and Gen Z generations, born between 1981 and 2011.
Indeed, Brooks Macdonald research estimates that more than £300 billion will be transferred to around 300,000 beneficiaries in the next decade alone. This figure exceeds the total wealth currently managed by UK advice firms, which stands at approximately £274 billion.
Long-term, Unbiased says that over the next 30 years, an estimated £5.5 to £7 trillion will be passed between generations – the “biggest financial shift in history”.
3 compelling benefits of family tree financial planning
With the Great Wealth Transfer already upon us, IFAs need a strategy.
Clients will need support when passing down their wealth, particularly in today’s challenging tax landscape, with pensions set to be included in the scope of IHT from April 2027. Plus, their wealth will soon be in the hands of the younger generations, who will face their own personal and legislative challenges in the decades to come.
Here are three reasons to form such a strategy now, rather than later, and the benefits you could see.
1. Longevity
If you are close to retirement yourself, you are probably already looking at options for maintaining consistency for your clients long-term.
On the other hand, if you still have several years to go in your career, you might not have thought about how your clients’ families come into the picture.
For instance, a 77-year-old client could remain with your business for another 20 years. By also engaging with their two children, aged 43 and 45, you could then secure an even more prosperous future both for your business and for the family, potentially helping members of one family for 40 years or more.
Of course, you may be retired during the lifetimes of your clients and their children.
Nevertheless, being a trusted ally to a family, rather than just to one person, secures the longevity of your business and helps it endure beyond your tenure.
2. Showing the value of advice, beyond financial gain
Despite IFAs’ best efforts to instil trust in clients and prospects, made more concrete by Treating Customers Fairly and Consumer Duty, FTAdviser reports that a quarter of UK adults still aren’t confident about finding advice they can trust. Importantly, a high proportion of those who reported this lack of confidence were young adults.
Extending your services to whole families, rather than just individuals, could help to showcase the value of advice and instil trust.
Beyond the practical and financial advantages of intergenerational planning – more on this in the next section – the “soft” benefits should not be overlooked.
For example:
- If your older “core” client passes away, knowing their children already means you can more easily help them deal with the estate.
- When analysing lifetime gifting options for your core client, understanding their children’s stage of life, financial goals, and preferences is beneficial.
- Having access to advice from an earlier age could give clients’ children the knowledge and confidence to make good financial decisions during key milestones, such as starting their own family.
- If either your core client or their family member is a business owner and employs other members of their family, everyone seeing the same financial adviser could be hugely advantageous.
At the end of the day, it is probably better for a family to receive both emotional and practical support from one trusted IFA business, rather than fragmented advice from multiple IFAs, or only one party being advised.
3. Tapping into effective solutions for clients
As the estate planning landscape is set to shift in 2027, it is all the more important that families communicate with one another about money.
Whether they’re looking into lifetime gifting options and trusts, or they have barely thought about the prospect of inheritance, your clients deserve a comprehensive service – and bringing their immediate family into the picture could help you provide it.
Want to expand your client referrals and start planning for whole families? We can help
Expanding your network starts with your existing clients.
Gaining referrals from family members, friends, or colleagues of existing clients could be a more cost-effective way to increase your clientele. Plus, you are likely to end up with “right fit” clients who represent the kind of person who would benefit most from your service.
When you join us, we will help you broaden your horizons.
Want to learn more? Email hello@corbelpartners.co.uk or call 01925 637891.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate tax planning, trusts, or estate planning.