The Great Wealth Migration
By Teamspirit on Thursday, 23 January 2020
300,000 people in the UK are set to inherit £327bn over the next ten years. But almost half (46%) of advisers do not have any relationship with their clients’ children. Which is a missed opportunity.
By not investing time in communicating with this cohort, advisers risk a Great Wealth Migration away from their firms, which will no longer be advising on those assets. Historically, 90% of heirs change advisers after inheriting, so they must build multigenerational relationships with their clients and their families early.
They must adapt to meet the difference in demands and expectations across generations. These include: increasing acceptance of digital advisers; a values-first approach; straightforward customer experience; and a diverse and complex mix of financial providers.
In 2020, we predict a trend in these businesses redoubling their efforts in understanding these demands and altering their business models, methods of communication and advertising to ensure relevance.
Killik’s silo is a great example of a wealth manager enhancing its digital proposition and multigenerational appeal.
• Advisers and wealth managers need to create multi-generational appeal – think digitally first and how your values can be communicated.
• Loyalty is not implicit for the younger inheritors – they are already used to multiple relationships.
• Relevance is critical, so identify your sweet spot.
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