Longer life expectancy, evolving inheritance patterns and IHT reforms are changing the financial planning landscape, making family-wide advice increasingly important.
As more generations live alongside one another, financial needs are becoming more interconnected. Advisers must increasingly look beyond individual clients to understand the wider family’s long-term financial position.
The impact of longer lives on family wealth
Improved healthcare and medical advances have steadily increased life expectancy in the UK. Families that once spanned two or three generations now commonly include four, creating greater financial interdependence.
Without a joined-up approach, financial decisions made by one generation can have unintended consequences for others. This makes long-term, family-focused planning more important.
Changing retirement and inheritance needs
Longer retirements mean wealth is often passed down later in life and potentially in smaller amounts. This can leave younger generations needing to build their own income-producing assets sooner, while older generations may need to reassess whether their retirement provision will last throughout their lifetime.