Expert: Ross Easton, Head of Intermediary Platform Propositions, Scottish Widows Facilitator: Helen Clark, Owner and Director, Mint Blue Consulting
Headlines:
- The Intergenerational Wealth Transfer requires strategies for advisers to retain relationships as wealth shifts from baby boomers to younger generations, including insights into communication preferences and generational differences
- The anticipated baby boomer wealth transfer and the importance of adapting to generational attitudes and digital preferences
- Addressing high rates of adviser change among beneficiaries and the need to connect with underserved groups like female clients
- Leveraging digital tools and early engagement to build trust with millennials and Gen Z
- The tailored approaches to better serve female clients, incorporating behavioural insights and targeted adviser training.
Discussion points:
Wealth transfer statistics and generational differences
Research highlighted the substantial wealth transfer anticipated from baby boomers, underscoring both the opportunity and challenges for advisers. The discussion noted generational differences in attitudes and communication preferences, with younger clients like millennials and Gen Z showing a strong preference for digital engagement. Tailoring advisory approaches to these generational traits was emphasised as essential for maintaining long-term client relationships.
Challenges of client retention across generations
Data presented revealed that 70% of beneficiaries tend to switch advisers after inheriting wealth. Building early relationships with beneficiaries and attorneys was identified as critical, as well as addressing unique challenges in engaging underserved groups like female clients, who often feel disconnected from the financial services industry.
Engagement strategies for younger generations
Advisers were encouraged to leverage technology and digital tools to meet younger clients’ preferences. Strategies such as providing financial education, initiating early family conversations, and offering complimentary reviews were discussed as ways to build trust and relationships with the next generation.
Improving engagement with female clients
The discussion recognised a need to engage female clients more effectively. Research indicates that many women feel underserved, prompting suggestions for advisers to adopt tailored communication strategies, apply insights from behavioural economics, and invest in additional adviser training to better address women’s financial needs and preferences.
Key takeaways:
- Focus on building relationships with beneficiaries and legal representatives to strengthen client retention across generations
- Tailor communication styles and offerings to meet generational preferences, particularly focusing on younger clients' needs
- Use digital platforms to improve client experiences and engagement with tech-savvy generations
- Prioritise financial education initiatives, including early conversations with younger family members
- Evaluate current practices and consider improvements, such as training on behavioural economics and tailoring investment communication for women
