Passing down wealth is the top priority for UK adults when it comes to legacy planning, according to new research from Canada Life. The research, which forms part of Canada Life’s ‘Long Term Close Up’ campaign, found nearly half of UK adults (46%) believe providing financial security for family members is very important. This was followed by leaving behind a property that they own (36%) and a lump sum or investments that can be inherited (25%).
However the research reveals significant generational differences, which could have a major impact on how advisers engage with their clients on inheritance planning. Millennials (aged between 26 and 40) put greater emphasis on their legacy leading to a more equal society, with 40% saying this is very important, compared to 30% of boomers (aged between 56 and 75). With this younger generation expected to inherit wealth as part of the great intergenerational wealth transfer in the coming years, understanding their priorities when it comes to future financial planning will be key for advisers.
These generational differences also extend to the recipients of financial legacies. According to the research, UK adults are most likely to want their children to receive it with over three-fifths (63%) of adults saying this, more than four in 10 (41%) would leave their wealth to their partner, and over a fifth (22%) to their grandchildren. However, millennials are more likely to leave their legacy to their siblings (21%), compared to 8% of boomers.
Lara Bealing, Marketing Director, Canada Life UK, comments: “Passing on wealth to loved ones has long been an important part of financial planning, however the pandemic and the great wealth transfer have accelerated conversations around intergenerational planning.
"This presents a unique opportunity for advisers to grow their client base, as well as create further value in their own business models as funds flow between generations. It’s also an opportunity for advisers to build greater connections with their clients and to expand the advisory relationship beyond the traditional focus of the primary client. Building relationships with the wider family earlier by having the conversations which span generations will clearly demonstrate both the role and value of advice.”
Further details on Long Term Close Up can be found here
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