More than half of advisers are not taking any steps to target potential clients aged below 45, research from Sanlam finds.
Around 200 advisers and 1,000 people aged between 25 and 45 were polled for the study, which looked at the intergenerational transfer of wealth in the UK over the next 30 years.
Nearly a quarter of advisers surveyed say they are concerned about their ability to target this younger generation of clients and are aware of the perceived threat from robo-advisers and finiancial technology tools.
Indeed, 45 per cent of advisers polled say potential younger clients are more likely to trust science or model-based advice rather than human advisers.
Robo advice was seen as the biggest threat to the future of their firm by 40 per cent of advisers surveyed.
However, 80 per cent of advisers says the intergenerational transfer of wealth is the greatest opportunity for the advice sector and 61 per cent say they have seen an increase in the number of clients asking about this over the past three years.
More than 90 per cent of advisers say people under 45 are not getting adequate financial advice.
The research also found that 76 per cent of the people under 45 that were surveyed say they will look to get financial advice at the time of receiving their inheritance.
Sanlam UK distribution head John Pyburn says: “It’s a very British trait to avoid conversations about money and the sensitive subject of when parents or grandparents will pass away. However, the absence of these discussions is leaving clients and their families in limbo.”
Pyburn says: “Notably, people aged between 25 and 45 are expecting to receive an inheritance without fully understanding how much and the impact it could have on their financial futures. These discussions will help both parties and start to build relationships between advisers and the beneficiaries.”
He adds: “In addition, parents can take comfort from knowing their children are seeking financial support from a trusted adviser. For the adviser, it means they can continue to provide high-quality service and care with the transfer of wealth from one generation to the next.”