Advisers could lose potential clients through lack of intergenerational planning, research by HSBC Life (UK) has revealed.
This follows on from a report by Time Investments last week which found that just 48% of Millennials and Generation Z have a relationship with the adviser used by the family members they are expecting to receive an inheritance from.
The HSBC study found that 96% of advisers surveyed said that intergenerational planning is important for their businesses, with more than half (56%) viewing it as highly important.
It also found that 62% claim to have a clear intergenerational business strategy with 30% saying they are working on one, while 2% have ruled it out.
However, just 30% of advisers said they have discussions with clients’ children as the research showed that advisers are more successful at engaging with clients’ partners.
Around six-out-of-10 said they have met clients’ partners and more than half (54%) have discussed financial planning with them.
Mark Lambert, head of onshore bond distribution at HSBC Life (UK), said: “Advisers may have worked their whole career to build up their client bank and their clients’ wealth but if they don’t put in place strategies to build a trusting relationship with inheritors there is a very real risk that this wealth will go elsewhere.
“While many advisers do also have a relationship with a client’s spouse it can be less common for them to know their children. This makes it even more important to encourage financial conversations with clients, spouses and beneficiaries. Encouraging ongoing conversations is the key to retaining future clients.”
