Financial planners are increasingly emphasising the importance of involving the entire family unit in the wealth transfer process, according to new research from investment manager, Quilter Cheviot, with The Lang Cat.
According to the research, 17% of advisers always include family members when advising, while 77% suggest involving the wider family but leave the final decision to the client.
Despite these efforts, a nationally representative YouGov survey found that 32% of those who paid for specialist advice in the last two years reported that their adviser did not involve their spouse or family in the process.
Advisers are also divided on how to charge for advising additional family members. For example, 32% of advisers treat wider family members as separate individual clients and charge accordingly. Slightly more (33%) charge the family as a single entity while 17% charge the wider family separately but at a lower rate than the main client.
Consumer expectations are clear, however, with 66% of people who have received advice expecting a financial adviser to also provide advice to their spouse and/or family as part of the service.
Similarly, 42% of those who involve family expect the adviser to start involving the spouse and/or family immediately at no extra cost. Only 11% of clients who consult independent financial advisors would not want their family to continue receiving advice from their adviser.
This data underscores the growing need for financial planners to adopt a more inclusive approach, ensuring that the entire family is prepared for the great wealth transfer.
David Denton, head of technical at Quilter Cheviot said: “In the face of the great wealth transfer, it is imperative for financial planners to adopt a comprehensive and inclusive approach that involves the entire family unit. Our research highlights that while many advisers are making strides in this direction, there is still room for improvement.
“By ensuring that spouses and family members are actively included in the financial planning process, we can better meet the expectations of our clients and facilitate a smoother transition of wealth across generations. This holistic approach not only strengthens family financial security but also builds lasting trust and relationships with clients.”
Adviser research was conducted in August 2024 via The Lang Cat’s adviser research panel. The survey was completed by 151 advice professionals.
