View more on these topics

Advisers missing out on intergenerational wealth transfer

Advisers are missing out on a siginficant amount of business by not ensuring they continue financial planning for clients’ beneficiaries, a new report suggests.

Research into the opportunities advisers have to cash in on intergenerational wealth transfer by Octopus Investments indicates that most advisers have an existing advisory relationship with just 20 per cent of a client’s beneficiaries.

While just over half said they were working on these relationships, 22 per cent said they didn’t know who the beneficiaries are, and 39 per cent said it was not something that was discussed with clients.

In the survey of 202 planners, a third said they found conversations about continuing to advise beneficiaries difficult.

Are advisers at risk of losing wealth across generations?

Octopus also cites research suggesting that more than two thirds of UK adults expecting to inherit £250,000 or more do not currently have a financial adviser.

Octopus managing director Paul Latham says: “It’s well-known that we don’t like to talk to our families about death, and it can feel even harder in a professional context. Yet in our experience, the conversation is nowhere near as bad as people expect. Most clients tend to understand the obvious benefits for their children or grandchildren and are often relieved if someone brings it up first.

“The benefits for the both advisers and beneficiaries in maintaining the relationship are clear. The adviser is able to retain the assets under advice and add to their client base, but more importantly, beneficiaries receive invaluable advice on the assets being left to them.

“The loss of loved ones is often an incredibly difficult and stressful time, never mind the added worry of any financial implications. For the beneficiaries it can therefore be enormously helpful to have an understanding of what is likely to happen well in advance.”

Last year, Octopus announced the launch of Octopus Wealth, a restricted advice business to target new-to-advice customers.

 

Recommended

Openwork launches lifetime mortgage product

Openwork has announced it has developed its own lifetime mortgage product, and that it is now available through a pilot scheme. The financial advice network details that its monthly income drawdown offering is available through an exclusive partnership with Canada Life, which bought Retirement Advantage in January last year. It says the product has been designed […]

AFH ups revenue targets after £1.5bn in acquisitions

Consolidator AFH has added £1.5bn in funds under management through its 16 acquisitions this year, its annual report shows. The firm, which operates financial advice, discretionary management and platform services, says that funds under management reached £4.4bn in October, up from £2.8bn a year previously. £1.5bn of the inflows came from acquisitions, compared to £440m […]

Three reasons to choose a UK investment bond

UK investment bonds have, for too long, been overshadowed by alternative tax wrappers and the perception that tax within a life fund is a disadvantage. This thinking can automatically discount an investment solution that can be very favourable, especially when you consider the tax changes over recent years. UK investment bonds can offer the right […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com