Partner Insight: How philanthropy advice could head off a client crisis

Dubbed the ‘Great Wealth Transfer', £5.5 trillion is set to pass between generations within the next 30 years in the UK.¹

Forward-thinking advisers are conscious of the risks this poses; however, the majority of advisers are seemingly unconcerned about retaining next-generation heirs as clients.

This confidence may be misplaced. Indeed, research in the US has found that 92% of affluent investors who use their own adviser did not consider their parents' adviser in their selection process.²

How can advisers futureproof themselves against this risk? Part of the solution may be to engage the next generation by advising on charitable giving.

Demand among younger millionaires

Recent research conducted by the Charities Aid Foundation (CAF) found substantial demand among millionaires for help with their charitable giving. What's more, this demand was significantly greater among younger millionaires aged 18-34 (57%) and 35-54 (49%) than among those aged 55 or older (34%).³

So, how well are advisers meeting this demand? To what extent are they offering this advice, and how could they be doing more?

That's what CAF and Professional Adviser set out to discover by surveying 215 IFAs, wealth managers and chartered planners who work with high-net-worth individuals. 

References:

1. Kings Court Trust, ‘Passing on the Pounds: the rise of the UK's inheritance economy', 2017
2. Cerulli, 2023
3. CAF brand study - Savanta MillionaireVue, 2023