A third of wealth managers are not offering inheritance planning services to wealthy clients over 60, risking extreme loss of business in coming years, according to GlobalData.
GlobalData findings showed 35 per cent of the world’s millionaires were over the age of 60 and many did not have solid inheritance plans in place for when they passed away.
Head of wealth management at GlobalData, Bartosz Golba, said managers who specialised in working with high net worth (HNW) clients should ensure their inheritance plans were up to scratch and benefited the direct family members of each client.
“Wealth managers can cash in on this relationship,” he said.
“In general, HNW investors reach out to advisers to save time and benefit from expertise of professionals they have been working with.”
Golba said the ageing population would likely attribute to the largest intergenerational transfer of wealth in the next two decades, but that inheritance planning had still not been seen as a major concern for many advisers.
“Wealth managers have no choice but to start bonding with their clients,” Golba said, adding advisers were at significant risk of losing business and profit if they did not adequately manage the transition between client and inheritor.
“Different studies show that 65-90 per cent of heirs switch financial advisers after inheriting wealth,” he said.
GlobalData said wealth managers who struck the balance between serving HNW clientele and keeping hold on the future generation were more likely to succeed long-term and could also attract clients who had switched from other providers.
