The Chartered Insurance Institute Group, parent of the Personal Finance Society, has warned that the Financial Planning profession is “underprepared” for the biggest intergenerational wealth transfer in UK history, estimated to be as much as £5.5trillion by 2050.
The CII says its findings from a recent roundtable suggest Planners are “more worried than prepared” for the so-called Great Wealth Transfer.
The roundtable brought together Financial Planners, policy influencers, and consumer advocates who concluded that there was “a lack of readiness across the sector.”
A majority of survey respondents highlighted in particular the potential to lose clients after bereavement, yet only 44% said they have an intergenerational advice strategy in place and fewer than 40% have a strategy for engaging adult children - the group identified as the hardest to support post-inheritance.
With only one in ten UK adults accessing regulated financial advice, the majority of those set to inherit wealth may do so without professional guidance, the CII warned.
Its report suggests that the greatest barriers are behavioural, with advisers highlighting difficulties in navigating complex family dynamics, building trust with inheritors and encouraging families to discuss inheritance and end-of-life planning.
The CII is calling for greater collaboration across professions and policymakers, alongside enhanced research to better understand and address the risks.
It has identified the key priorities as including:
- Improving cross-sector standards and coordination
- Strengthening protections against economic abuse
- Expanding access to financial advice
- Developing practical toolkits for firms
- Building evidence on the cost of unadvised inheritance
Adam Harper, executive director of strategy, advocacy and professional standards at the CII Group, said: “The Great Wealth Transfer represents a defining moment for the financial advice profession and the clients it serves. While awareness is growing, this report highlights the urgent need for coordinated action to ensure the sector is prepared to support consumers in this significant shift.”
Carla Brown, President of the Personal Finance Society, said: “The scale of the Great Wealth Transfer brings with it both profound responsibility and a significant opportunity for finance professionals. Too many families are still unprepared for the emotional and financial complexities that come with passing on wealth.
“We need to evolve how we engage, not just with our clients, but with their families too, building trust across generations and making sure that any inheritance is supported by clear, well-structured financial planning.”
The Chartered Insurance Institute is the professional body for the insurance and Financial Planning professions. The Personal Finance Society is a sister professional body under the CII umbrella which has 40,000 members.
• Great Wealth Transfer Roundtable summary report