In this article, Brendan Dolan, International Sales Director for Quilter International, provides the stark reality that unless strategic planning is in place, all your hard work to build your business could be undone.
Many advisers are already preparing for the US$15 trillion global opportunity that intergenerational wealth transfer is presenting. Do you have a strategy in place to help support your clients in this key area?
An estimated wealth of more than US$15 trillion, of which US$2 trillion is from Asia, will be passed on to the next generations by 2030*. This is partly due to the willingness of many Baby Boomers to help the younger generations fulfil their long-term goals. The wealth of the Baby Boomers is often accumulated from their business and the time has come to pass it on to the next generations.
However, most of these Baby Boomers tend to take an unplanned, last minute approach. A far better outcome for your clients can be achieved with a carefully thought through long-term strategy.
Where’s the commitment from future generations?
Did you know that 80% of UK advisers do not have a relationship with their current clients’ beneficiaries, many of home are millennials.**
Meanwhile in research carried out earlier this year, we discovered that in Asia High Net Worth Individuals have active relationships with two or three wealth management institutions (2.4% on average).***
If you’ve been putting in hard work over the years to build up a business, this could now be under threat of churn with the next generation taking the inherited wealth elsewhere. You may already have a good relationship with your clients and that could extend to their spouses. If you don’t have a relationship with their children or grandchildren all your hard work could be undone very quickly with little to no value remaining after they have died.
Our experts can help you develop your business strategy
We can help you take advantage of this opportunity to help your clients. Simply visit our dedicated ‘There for you’ site to:
• Assess the intergenerational risk your business faces today
• Download support material to help you explain to your clients the impact intergenerational wealth planning can have on their families
• Find tips on dealing with family members.
Over the coming weeks we’ll bring you fresh ideas and insight as to how you can add value by using your business strategy in this important area of intergenerational wealth transfer.
The information provided in this article is not intended to offer advice.
Quilter International cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained in this article.
* Source: Capgemini’s World Wealth Report 2020
**Robo Advice thematic research Published Jan 2020 GlobalData
***Quilter International’s Asia HNWI’s intergenerational wealth transfer research 2020
