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 
2 https://www.moneymarketing.co.uk/analysis/wealth-transfers-intergeneration-financial-advice/ 

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

Research Methodology

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

Media enquiries

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About Fidelity International

Fidelity International offers investment solutions and services and retirement expertise to more than 2.5 million customers globally. As a privately held, purpose-driven company with a 50-year heritage, we think generationally and invest for the long term. Operating in more than 25 countries and with $565.7 billion in total assets, our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers, to private individuals. 

Our Workplace & Personal Financial Health business provides individuals, advisers and employers with access to world-class investment choices, third-party solutions, administration services and pension guidance. Together with our Investment Solutions & Services business, we invest $437billion on behalf of our clients. By combining our asset management expertise with our solutions for workplace and personal investing, we work together to build better financial futures. Data as at 30 June 2020. Read more at fidelityinternational.com

About FundsNetwork

FundsNetwork™ is Fidelity International’s adviser platform that provides advisers and their clients with access to a range of investment related services.
 
Launched in 2000, we have almost 20 years’ experience of helping independent financial advisers run efficient and profitable businesses, while serving the needs of their clients. We are committed to improving client experience at every stage of the advice process, through the development of a platform which offers flexibility and efficiency to support their changing needs.
 
The system, developed with Bravura Solutions, provides advisers with access to a broad set of product wrappers and investments, as well as enhanced administrative services. These include;
 

  • Investments – over 5,000 assets from over 200 partners including Fidelity
    • Funds – 3,557 funds (unit trusts, OEICs & SICAVs)
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    • Investment Trusts – 175 options
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  • International Bond – provided by Canada Life and giving access to platform fund range
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  • Evolution and Estate Planning Bonds – provided by Utmost Ltd and giving access to our platform fund range
  • Regular Withdrawal Plan – monthly, quarterly, semi-annual or annual payments available
  • Model Portfolios and DFMs – advisers can create bespoke portfolios of up to 30 funds and use defined models where discretionary permissions exist

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