Estate planning demand expected to increase over 5 years

28 February 2021

Over half of advisers expect demand for tax and estate planning advice to increase over the next five years, driven by growth in the ‘complex families, complex finances’ demographic, according to new research from Canada Life.

Fifty-eight percent of advisers expect demand to increase, while a further 39% expect it to remain the same. Only 2% of respondents thought they would see a reduction in demand for tax and estate planning advice.

Canada Life said the findings come as the market experiences a rise in the ‘complex families, complex finances’ demographic – a group of retirees whose family situation complicates their financial needs and planning. This sector of society currently accounts for a third of the market but is expected to be the largest group by 2035.

Meanwhile, in separate research, carried out in partnership with AKG, Canada Life found that a third (32%) of consumers would be happy to pay for specific advice on inheritance tax planning. A further 39% also said they would consider paying for the services of an adviser when thinking about their retirement planning.

Neil Jones, tax and estate planning specialist, Canada Life, said: “Advisers are clearly seeing an increase in demand for their services. This is being driven by consumers seeking advice on later life financial planning needs, many of whom have been prompted to take action by the global pandemic. This is a sweet spot for advisers as we witness exponential growth in the ‘Complex Families, Complex Finances’ demographic.

“Financial planners looking to the future will see the potential for opening their door to new clients and producing holistic plans that not only help clients today but create the potential to advise multi-generational family units too.”

Guy Tolhurst, managing director, Intelligent Partnership – which recently published its Estate Planning Guide supported by Canada Life – said estate planning was an exciting but challenging area for advisers.

Tolhurst said: “With an ageing population and huge intergenerational wealth transfer, demand is only set to grow and the benefits to clients and advisers are potentially massive. But this can be a complex area in which rules change and practicalities shift, so education and awareness are key.”

Professional Paraplanner