What is the great wealth transfer?
Over the next few decades, the largest transfer of wealth in history is predicted to occur, with $18.3 trillion to be transferred globally by 20301.
This ‘great wealth transfer’ from older to younger generations is expected to have a huge impact on financial advisers.
Research in the US2 shows that 70% of wealthy families lose their money by the second generation, and 90% by the third. This gives advisers a chance to help families keep their wealth.
However, 87% of children say they wouldn’t keep their parents’ adviser after inheriting3 . So, this shift is both a challenge and an opportunity for advisers.
1 Source: Vanguard analysis based on ONS 2020 Wealth and Assets Survey and 2020 National and Subnational Mid-year Population.
2 Source: The Williams Group, 2003.
3 Source: Only 13% of adult children would use parents’ adviser: Cerulli, May 2019.
Children and advice
87% of children would not consider retaining their parents’ adviser after they receive an inheritance
Some leading reasons
Lack of previous engagement
Depletion of portfolio size
Mis-match in brand, generation, gender
Our framework for success
The Advisory Research Centre has constructed a framework for advisers to use to navigate the great wealth transfer successfully. It’s split into two key pillars:
- client engagement and proposition
- practical guidance and insights on how to handle legacy planning conversations
Download our adviser's guide to the great wealth transfer for more information on our framework to navigate legacy planning.
Client-facing documents and templates to help you
Adviser guide to the great wealth transfer
Client guide to legacy planning
Financial education assessment
Couple preparedness assessment
