Schroders and Benchmark have published “flagship industry guides” aimed at helping advisers navigate the great wealth transfer and female financial planning.
The firm noted that in the coming years, a transfer of wealth estimated in the trillions of pounds will take place, primarily from baby boomers to their millennial children.
Research conducted by Schroders found that 63% of advisers are now concerned about the potential business loss of these wealth transfers, up from 59% last year. Many advisers have an ageing client base, but only 16% are implementing a differentiated sales and marketing strategy targeting younger investors.
This trend presents a profound opportunity for financial advisers, Schroders said, but it also poses a substantial risk for firms that may experience a loss of assets under advice if a retention strategy for wealth transfer is not in place.
See also: Are decumulation strategies fit for purpose?
To help advisers address these challenges, Schroders has written an eight-step guide on intergenerational wealth transfer. It provides actionable insights and strategies that span auditing the business to understanding potential risks, to approaching communications with families and the next generation.
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 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 breaks down the specific financial requirements that women face, such as having lower retirement savings compared with men of the same age and being more likely to face estate planning challenges and financial difficulties after divorce.
See also: Square Mile reveals income targeting strategies are back on top
Gillian Hepburn, commercial director, Benchmark (pictured), said: “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, added: “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.”
See also: Rathbones’ David Coombs weighs in on a second Trump presidency
