The financial planning profession is underprepared for the intergenerational transfer of wealth, according to the Chartered Insurance Institute Group.
The UK is set to see the largest intergenerational transfer of wealth in its history, estimated at £5.5 trillion by 2050.
However, the CII has warned in a new report that there is both growing concern and a lack of readiness across the sector to deal with the shift.
The majority of survey respondents acknowledged the potential to lose clients after bereavement but only 44% have an intergenerational advice strategy in place. Fewer than 40% have a strategy for engaging adult children – the group identified as the hardest to support post-inheritance.
The report suggests that the greatest barriers are behavioural, with advisers highlighting difficulties in navigating complex family dynamics, building trust with inheritors and encouraging families to discuss inheritance and end-of-life planning.
Adam Harper, executive director of strategy, advocacy and professional standards at the CII Group, said: “The Great Wealth Transfer represents a defining moment for the financial advice profession and the clients it serves. While awareness is growing, this report highlights the urgent need for coordinated action to ensure the sector is prepared to support consumers in this significant shift.”
The CII is both calling for and enabling greater collaboration across professions and policymakers, alongside enhanced research to better understand and address the risks.
Key priorities include improving cross-sector standards and coordination; strengthening protections against economic abuse; expanding access to financial advice; developing practical toolkits for firms; and building evidence on the cost of unadvised inheritance.
Carla Brown, president of the Personal Finance Society, added: “The scale of the Great Wealth Transfer brings with it both profound responsibility and a significant opportunity for finance professionals. Too many families are still unprepared for the emotional and financial complexities that come with passing on wealth.
“We need to evolve how we engage, not just with our clients, but with their families too, building trust across generations and making sure that any inheritance is supported by clear, well-structured financial planning.”
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