Schroders and Benchmark today announced the publication of two flagship industry guides aimed at helping advisers navigate the key industry themes of female financial planning and wealth transfers.
In the coming years, a significant transfer of wealth, estimated to be worth trillions of pounds[1], will take place primarily from baby boomer to their millennial children.
Research conducted by Schroders[2] found that 63% of advisers are now concerned about the potential business loss of these wealth transfers, up from 59% last year. Furthermore, many advisers have an ageing client base, with only 16% implementing a differentiated sales and marketing strategy targeting younger investors.
This trend presents a profound opportunity for financial advisers, but it also poses a substantial risk for firms that may experience a potential loss of assets under advice if a retention strategy for wealth transfer is not in place and they fail to capitalise on this shift.
To address these challenges, Schroders has developed an eight-step guide on intergenerational wealth transfer. The guide equips advisers with actionable insights and strategies that span auditing the business to understanding potential risks, to approaching communications with families and the next generation.
By providing the necessary tools to successfully navigate challenges, the guide assists advisers in retaining clients through the generations, as well as those seeking to expand their business by appealing to a potentially overlooked client base.
In addition, Benchmark has launched a guide specifically focused on women’s financial planning challenges. In the baby boomer generation, where wealth is transferring now, women are typically the first recipients of family wealth. Recent research by Schroders[3] indicates that many feel excluded from adviser conversations, leading to only 34% saying that they would continue to use the same adviser after the death of their partner or post-divorce.
Benchmark’s guide serves as a valuable source of information for addressing the disconnect between advisers and their female clients. It breaks down the specific financial requirements that women face, such as having lower retirement savings compared to men of the same age and being more likely to face estate planning challenges and financial difficulties after divorce. This information aims to empower advisers to initiate conversations with their female clients and develop tailored propositions and communication strategies that effectively cater to the needs of women.
Gillian Hepburn, Commercial Director, Benchmark, said:
“At Schroders and Benchmark, we recognise the importance of understanding the evolving adviser landscape and directly engaging with them to understand the issues they are facing. These two guides are clear and tangible examples of the dedicated support that we look to provide. By leveraging the insights provided in these guides, we hope financial advisers can better navigate the complexities of wealth transfer and also meet the specific needs of their female clients, ultimately enhancing their service and unlocking new opportunities for business growth and retention while, crucially, ensuring that clients feel understood, valued, and supported.”
James Rainbow, Head of UK, Schroders, said:
“The launch of these guides exemplifies the proactive efforts being made across the business to provide meaningful support to advisers and enhance their client conversations. It is crucial that advisers are equipped with relevant and accurate information, as this enables them to demonstrate true value in their service offerings and foster the growth of their businesses among the next generation of clients.”
