LATER LIFE PLANNING
ADVANCING INTERGENERATIONAL PLANNING OPPORTUNITIES
Matt Ward Communications Director AKG Financial Analytics
AKG ’ s industry research briefing – Advancing Intergenerational Planning Opportunities 1 – explored the potential for intermediary firms to further develop intergenerational planning opportunities with clients and their families . The overarching aim was to provide readers with an understanding of :
• the nature , scope and potential of the opportunity for intergenerational advice and planning services
• the drivers for demand and growth
• the potential barriers to engagement , development and the associated issues raised
• the processes , skills and approaches required for success
• where intergenerational planning will fit in the advice landscape of the future .
In such projects , it is important to gather sentiment and develop understanding from the key stakeholders in the relevant market and , in the case of intergenerational planning , it ’ s primarily with clients and advisers , ably supported by providers and other professional services . AKG ’ s briefing was informed and underpinned by findings from three separate but complementary market research exercises involving both consumer and adviser audiences / respondents . The Executive Summary points emerging from the briefing are as follows :
• COVID-19 has worked as an accelerant for the development of intergenerational planning opportunities , given that families have been thrust together to discuss some very difficult issues in the past 12 to 18 months . The growing use of online meeting technology , in addition to creating time efficiencies in intermediary firms for enhanced client focus , has also meant that family unit discussions can be far more easily facilitated .
• Expansion of the advisory relationship beyond the traditional focus of the primary client to the spouse / partner and other members of the family unit is a prerequisite for those wishing to advance intergenerational planning opportunities .
• Intergenerational planning will require shifts in mindset and traditional servicing approaches for many advisers and primary clients . Reticence to move forward on this broader / deeper relationship basis , on the part of both clients and advisers , is the most mentioned barrier to progress . Client reticence is often founded on reluctance to share too much information about plans . Adviser reticence may be founded on reluctance to disturb the relationship , but it may also be based on a lack of confidence in probing further , and for advisers who are less specialist in this area , it may indicate a need for more knowledge , technical understanding or better resources to enable development .
• The development of training and compliance modules within firms which support and enhance the ability of the adviser to address and tackle the two core issues of vulnerable clients and family disputes will be vital . Similarly aligned processes which continue to maintain best practice and ensure the recording of all interaction and issues will be needed to provide solid audit trails .
• There is also a requirement for development of empathic relationship and soft questioning skills , and a need to broaden fact-finding to bring family hierarchy , goals and issues into play .
• Forging relationships with other professional services will be a key requirement for those firms seeking to present more coherent and comprehensive intergenerational planning services .
• There is also a defensive requirement for some firms to develop intergenerational planning services to preserve assets under
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