Nearly 9 in 10 Financial Planners expect demand for inter-generational advice to grow over the next 5 years, according to new research.

Over half (54%) of Financial Planners surveyed by analysts AKG said demand for inter-generational planning has grown in the past year.

Some 8% say it has increased significantly over the past 12 months. 

The figure rises to 88% when planners were asked about demand over the next five years, with 25% expecting significant growth.

Over 2 in 5 (42%) Financial Planners said they are now proactively discussing the issue with clients and over a quarter (29%) said the Coronavirus pandemic has increased interest in inheritance planning and financial reviews.

However, over 2 in 5 (44%) Financial Planners said they are concerned about potential family disputes while 38% were worried about possible vulnerable client concerns and 24% said they lacked expertise in legal issues.

Sean Christian, managing director of the wealth management division at Canada Life, said: “Inter-generational wealth planning presents a huge opportunity, but it isn’t an open goal. Wealth accumulated in property and other assets will reach trillions of pounds in the coming decades and advisers will need to have strategies to manage this wealth through the generations.

“Investing in softer skills, working closely with providers who offer holistic solutions, and keeping up to speed with the technical aspects of trusts and estate planning will keep advisers one step ahead.”

When it comes to what is driving the demand for inter-generational advice, Financial Planners were split between client needs for inheritance tax advice and pension law knowledge.

Almost two thirds of the Financial Planners surveyed said they believed greater awareness of the impact of inheritance tax is driving demand from clients. Some 40% said changes in pension law to make funds more attractive as a way of passing on wealth is adding to the growth in demand.

Matt Ward, communications director at AKG, said: “The development of training and compliance modules within firms which support and enhance the ability of the adviser to address and tackle the 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.”