- 71% of those with a will fail to reference their digital legacy in it
- Over eight in ten (84%) advised clients have been prompted by their financial planners to consider aspects of their digital legacy they would have otherwise overlooked
- Over two fifths (43%) ask their financial planners to manage their digital legacy
New research from St. James’s Place (SJP) reveals how people can overlook their digital legacy when it comes to financial planning, and the integral role financial planners and accountants can play in driving awareness around better digital legacy planning.
Despite much of our digital life being hosted online, a staggering seven in ten (71%) people with a will have failed to refer to their digital legacy in it, such as nominating a trusted individual to manage their accounts in the event of their death. Of those who did reference their digital life, nearly one fifth (18%) were prompted to do so by their financial planner /accountant.
Moreover, nearly half (48%) of those with a will have also not connected family members to their financial planner/accountant, meaning loved ones may struggle to track down details of a deceased’s digital life.
Financial planners ensure digital legacy isn’t overlooked
SJP’s research found that financial planners have assumed the responsibility of helping people understand their digital legacy and make preparations in the event of their incapacitation or death. Four fifths (80%) of those who receive advice found it helpful to talk to someone about the process of handing over their digital legacy rather than shouldering this responsibility on their own. Additionally, eight in ten (80%) say their planner made the process of tackling their digital legacy less daunting.
Financial Planners are also helping to fill knowledge gaps, with 84% of advised clients having been prompted to consider aspects of their digital legacy they would have otherwise overlooked. Over two fifths (43%) are also outsourcing the task of managing their digital legacy to their planner, as part of their wider financial planning.
Eddie Grant, Director at St. James’s Place comments: “Thinking about legacy planning can be daunting, and tackling this alone can make an already difficult process even more isolating. As the world’s digital footprint grows – with notable spikes in digital uptake following the dot com boom and the pandemic – managing one’s digital legacy becomes an increasingly important part of this process, but is often overlooked”.
“As our research has shown, financial planners can help to not only alleviate some this burden, but also offer food for thought, and highlight areas of your digital legacy which you may not have considered having to pass on. Having an expert there to walk clients through digital legacy plans can be a considerable help, for individuals and their loved ones. Therefore, it’s important that clients connect their financial planner or accountant with their loved ones or trusted individuals, so they can contact them in the event of your death or incapacitation as this is one of the non-financial benefits of advice. Often, we see many people fail to pass over details of their planners, which unfortunately adds an additional layer of distress during an already difficult time.”
