Nearly three-quarters of mothers receiving financial advice want their children involved
71% of mothers seeking financial advice would like their adviser to develop a relationship with their children
- 38% say this is important because their children will inherit their wealth
- £5.5 trillion is expected to pass between generations in the next 30 years, highlighting the need for families to approach financial planning together
1 October 2020: Fidelity International’s Unlocking the Power of Advice report reveals the growing significance of financial planning within families, with almost three-quarters (71%) of mothers who receive financial advice wanting their adviser to build a relationship with their children as well. Two-fifths (38%) expect their children to inherit the majority of their wealth and want them to feel supported through this transferral.
An estimated £5.5 trillion will pass between generations in the UK over the next 30 years1. Fidelity International’s report found there is a significant opportunity for advisers to grow their family client base and create lasting relationships that span generations. In fact, 31% of IFAs believe the industry should focus on increasing wealth for the whole family, rather than just individuals. However, separate research by Accenture found 18% of advisers have never met with clients’ children, and over half only meet with future heirs once a year2.
One in ten (10%) women who receive financial advice first sought this as a result of having children - compared with 8% of men. While many would like their adviser to continue working with their family, a third (33%) of mothers believe this support would be most valuable at the point at which their children reach their own milestones and require advice.
1 Passing on the Pounds, Kings Court Trust 2017
Jackie Boylan, Head of FundsNetwork for Fidelity International comments: “Far more needs to be done to dispel the myth that financial advice is the preserve of older, wealthier generations. Younger relatives need to feel just as empowered in managing their money, particularly if they stand to inherit more in the future. I know many advisers are looking at how they can facilitate and support these conversations amongst clients and their families.
“While younger family members may not need financial advice immediately, having an existing relationship with an IFA who understands their circumstances can help them to identify the life stages at which they may require it. While parents can play an important role in making these introductions, advisers can also consider how they develop relationships with clients’ family members - speaking with them and using tangible and relevant examples. Without this, there’s a risk that that family’s business will ultimately drop off, rather than grow from generation to generation.”
Notes to editors
Fidelity International surveyed 2,000 UK adults on their views on financial advice. All respondents had over £1K worth of investable assets. Of the respondents 80% had a workplace or private pension and two thirds had sought financial advice in their life. Fieldwork was carried out by Opinium research in February 2020.
Fidelity International surveyed 406 IFAs on the topic of women and financial advice. Fieldwork was carried out by Censuswide in February 2020.
Fidelity International also undertook qualitative research amongst both women and IFAs between March and April 2020.
Click to read the full report - Unlocking the Power of Advice. For more about Fidelity’s Women and Money GETINvested campaign please visit https://www.fidelity.co.uk/women-and-money/?p=0&c=10
Ellie Pocock / Eleanor Ross / Jessica Riley
020 7360 7878/ Fidelity@Teamspirit.uk.com
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