Financial advisers are losing out as many lack an effective wealth transfer strategy for women.
This is because women are usually the first recipient of a wealth transfer when their spouse dies.
The latest Schroders adviser Pulse Survey, published today (21 June), found that 54% of advisers are now concerned about their business losing assets because of wealth transfers.
Only 11% of advisers have a strategy for retaining, attracting, and advising women.
According to Schroders, 60% of wealth in the UK will be in the hands of women by 2025 due largely to the baby boomer generation passing wealth from a husband to a wife.
“This is a challenge which we believe advisers cannot ignore as many of these widows choose to change adviser,” said Gillian Hepburn, Schroders Intermediary Solutions director.
Advisers have been urged to include female spouses in the financial planning process. Industry insiders say in that way they can build a relationship with spouses who will be less likely to change advisers when their husband dies.
“I always encourage a joint discussion and explain why I feel it is important,” Lindsay Carter, Ascot Lloyd independent financial adviser, told Money Marketing.
The Schroders survey identified the most significant trends affecting the advice market including the impact of rising inflation and the threat of negative market sentiment.
It also explored the opportunities and challenges for financial advisers and their clients in this period of soaring inflation and geopolitical tension.
Doug Abbott, Schroders head of UK Intermediary, offered insights on the survey results and what it meant for advisers and their clients.
He said that a combination of the cost-of-living crisis and stock market volatility has led to a sharp rise in bearish sentiment amongst financial advisers and their clients.
The survey showed that 57% of advisers and their clients expressed this sentiment in May 2022 as compared to 12% in November 2021.