Nearly a quarter (22%) of advisers believe they should have different sales, fee structures, or marketing strategies for different generations.
The research revealed that only a third (31%) of advisers have a strategy in place for the Great Wealth Transfer.
Regarding asset loss in the event of a client’s death, almost half (46%) of advisers are concerned about losing these assets under management. In fact, 50% of advisers who have experienced a client’s death estimated losing between £300,000 and more than £5 million in assets under management.
Advisers cited the primary reason for not retaining the assets of a deceased client’s beneficiaries as their belief that beneficiaries would prefer to spend their inheritance (68%).
However, 79% of clients indicated that if they received an inheritance, they would likely invest the money.
Despite 71% of advisers believing they have an approach to meet client needs across various life stages, Octopus Investments found that advisers are engaging with more than one generation of their clients’ family in only 16% of cases.
When asked about the challenges in advising this age group, nearly half (48%) of advisers said this generation is less engaged or interested in their finances.
Jess Franks, Head of Investment Products at Octopus Investments, stated, “We are on the cusp of a seismic shift as the Great Wealth Transfer occurs in the next couple of decades. There is also a clear generational divide, both in how advisers are engaging with clients’ beneficiaries and in perceptions of the value of advice among younger generations.”
