Advisers have been urged to include family members in retirement planning discussions, after research by Scottish Widows and NextWealth found the majority of individuals attend meetings alone.
According to the research, which polled both UK individuals and advisers, 52% of advised individuals say only one partner regularly attends review meetings. Meanwhile, 26% say adult children are not involved in financial planning at all and 21% of advisers also say that beneficiaries are not involved in annual reviews.
Over half (51%) of clients say they hold the adviser relationship in their name only and 37% of couples admit that whilst they try to attend meetings together, in practice only one party attends.
Jenny Davidson, intermediary wealth director at Scottish Widows, said: “Research points to the fact that advice can no longer be a one-person conversation. Excluding partners and family members risks weaker outcomes today and broken client relationships tomorrow.”
According to the research, there is a gap in how some advice firms engage secondary partners, with one in five (20%) not confident they understand the goals of their clients’ partners, while just 3% of advice firms have a defined formal process for them.
While the vast majority (86%) of clients are happy with their adviser and would recommend them to someone else, 19% admit they do not feel recognised as an individual and almost half (48%) say their adviser sometimes uses terms and phrases they do not understand.
Davidson added: “There’s a lot at stake here. Women are set to be the major beneficiaries of an estimated £7 trillion transfer of wealth over the next 30 years. Meanwhile, changes bringing unused pensions into scope for inheritance tax from April 2027 will make conversations across generations even more important.
“Advice firms that adapt their approach and engage partners, beneficiaries and wider family members earlier will be better placed to understand their clients’ needs, deliver stronger outcomes and build relationships that endure as wealth passes between generations.”
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