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Advisers missing chances to connect with heirs of baby boomer fortunes

November 22, 2018

- Research for Zurich finds few advisers are forging links with beneficiaries ahead of impending wealth transfer

Fewer than one in 10 (7%) clients of retirement age say their adviser has introduced themselves to their adult children, according to research for leading platform provider Zurich.

The findings suggest advisers could be missing out on chances to connect with the next generation of investors ahead of the impending transfer of wealth from baby boomers.  

It is estimated that £1.2 trillion* in wealth could cascade down from baby boomers to younger generations over the next 30 years.

But a study by YouGov for Zurich of almost 200 advised consumers aged over-55, found that few advisers are building relationships with family members who stand to inherit their wealth. 

Alistair Wilson, Zurich’s Head of Retail Platform Strategy, said:  “Baby boomers are set to trigger the biggest ever generational wealth transfer, yet advisers are missing out on critical opportunities to connect with their heirs. 

“By building trusted relationships with beneficiaries, advisers can help families to preserve their wealth, as well as enhancing their own prospects of managing assets across generations.

“Firms that don’t forge links with the next generation could begin to see their asset base decline.” 

Some 14% of advised consumers said they had introduced their adviser to their children – twice the number of advisers who have themselves taken this step.

When it comes to estate planning, just 4% of consumers surveyed said their adviser had involved their children in discussions about what happens to their wealth when they pass away.

“Advisers should consider how they can become a trusted family adviser,” Wilson said.  “It’s hard for people to think about a loved one passing away but involving heirs in conversations about inheritance is a good way for advisers to connect with beneficiaries, and demonstrate their value early.” 

Wilson also said it is important to review how their platform is geared-up to support intergenerational planning.

“Advisers need to ensure their platform offers solutions that support intergenerational planning, whether that’s a junior ISA or ‘family linking’ of accounts, which lowers costs for multiple generations of investors.

“It’s also crucial advisers consider how their platform technology appeals to the next generation of tech-savvy consumers.  Younger investors who have grown up in a digital world are likely to demand a very different user-experience to their parents which, at the very least, means mobile access to their investments.”

Five essential platform features for connecting with the next generation 
• Family linking of accounts to allow multiple generations to benefit from lower charges
• Junior pension and ISA to help parents and grandparent save for the next generation
• Trusts for passing on wealth tax efficiently
• Mobile-enabled client portal for access to investments on the go
• Engagement tools to help consumers understand the advantages of saving and investing lump sums early

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All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 660 adults whose pension is in drawdown, of which 190 have children and use paid for advice on how to manage their pension. Fieldwork was undertaken between 3rd - 15th October 2018. 

For further information please contact: 
Chis Johnson, Media Relations Manager
Tel: 07812 265 245