We expect £7 trillion to transfer between generations in the UK alone (1). This presents both opportunities and challenges for advisers.

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 US (2) 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 inheriting (3). 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.