While heightened geopolitical tensions have exacerbated rising global inflation and associated central bank rates, overall wealth and the need for effective wealth management will continue to grow, according to Utmost Wealth.
“While some reversal of the exceptional wealth gains of 2021 is likely in 2023, as several countries face slower growth or even recession, which has created challenges for individuals looking to secure their financial futures, the outlook is for wealth to grow,” says David Matthews, Head of Sales UK & Europe (Expat) for the offshore specialist.
There are several drivers of this, he points out. “An ageing global population creates an increasing need for individuals’ savings to last longer than previously and governments are increasingly placing the onus on individuals, rather than employers, to provide for their retirement.
“In addition, young adults entering the workforce potentially having lower levels of savings in investments compared to previous generations, meaning intergenerational wealth transfer will therefore become increasingly important.”
The company is also seeing increased mobility of clients, he says, where families may be based in multiple jurisdictions, meaning financial plans need to be reviewed and adjusted as client circumstances change.
“The UK has a highly complex taxation and regulatory environment and paraplanners and advisers will need to consider the most appropriate approach depending on each client’s circumstances. For example, portability may be an important consideration in which case having a policy that can potentially be endorsed to meet the taxation and regulatory requirements of the new jurisdiction may be an important requirement.
“Also, with IHT receipts continuing to increase as more estates are drawn into the IHT net, there is a growing need for timely planning to mitigate the impact that IHT may have on an estate.
“Utmost is well positioned to support paraplanners to help the generations of today and tomorrow, with propositions to assist clients preserve wealth and pass this to future generations.”
