Adapting to younger generations
It goes without saying that younger generations have different needs, attitudes, and wants than their parents.
Dr Eliza Filby is a leading generations expert and she believes there are some key considerations advisers can keep in mind to have the best chance of retaining assets when wealth passes down the generations.
“Advisers should think about their current offering to younger clients in terms of three things,” says Eliza.
“The first, does your service and advice feel bespoke? You have a generation of younger clients who are expect customised experiences. Are you bespoke in your communications, in the delivery, in the wording, in the documents?”
“The second thing is to ensure your advice is gender neutral. We really need to banish from our minds the ideas and stereotypes around what a female life path looks like and a male life path.”
“And the third thing is to be educationally focused. What stands out from surveys of younger people is their insecurity about their financial knowledge. Are you upskilling them? Are you teaching them? And if so, how are you doing that?”
Family conversations
Eliza is passionate about how understanding generational differences can lead to better business outcomes.
“You may think what’s this generational analysis got to do with me and my advice business?” says Eliza. “Well, you’re getting much more equality within marriages. Women are making much more of the big financial decisions. And children are having a much greater say in their parents’ financial decisions.”
Perhaps these social and economic changes are already impacting advisers. Research from Schroders found that 70% of women inheriting wealth change advisers within a year of their partner’s death.[1]
This is something we put to Kirsty Coldicott of KLC Financial, another financial adviser where intergenerational planning is integral to their process.
“I’ve not come across that issue yet,” says Kirsty. “But I can understand why that might be the case. Because if the husband has dealt with another financial adviser and the finances have been very much dealt with by the male, then maybe they just don’t have any relationship with the spouse or the children.”
“It’s interesting. I have had wealthy widows come to me for advice, but I didn’t interrogate why they didn’t stick with their original financial planner.”
“Almost never would I deal with one spouse rather than both. We’re not this faceless entity that just deals with the husband, where the widow and children have no idea who to engage with.”
“We’re not losing client assets because we’re engaging with the families regularly. That protects us.”
How to prepare for the new beneficiaries of wealth
If you’re an adviser, the simple fact is that the transfer of wealth to surviving female spouses and younger generations is either going to impact your business or already is impacting it.
To prepare, join Octopus for a webinar on Thursday 12 May at 11am. You’ll hear more from Alan, Sunny, Kirsty and special guest Dr Eliza Filby. We’ll also explain how we can support intergenerational planning in your business.
Click here to register for the webinar
Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: April 2022. CAM011954
[1] https://www.schroders.com/en/media-relations/newsroom/all_news_releases/schroders-financial-adviser-survey-only-7-of-financial-advisers-have-a-proposition-for-advising-and-retaining-women/
