Advisers are seeing an increase in demand from clients to discuss intergenerational wealth planning as a result of impending changes to inheritance tax on pensions.
Flagstone’s latest research revealed 56% have witnessed a rise in clients wishing to talk about the subject.
Overall, 28% said that intergenerational wealth planning is fast becoming a service offering in its own right.
More than a third (37%) are subsequently seeing more new business opportunities emerge with families of clients, vs individual clients than previously.
This is a pivotal moment given recent research from Boring Money suggested that four in five over 65s believe their children won’t stay with their current adviser.
These findings come as new Financial Conduct Authority data** shows that savers drew down more than £18 billion from their pensions in the year ending March 2025 ahead of the end of inheritance tax exemption that comes into effect in April 2027.
This was a 69% increase on the previous year.
Behind the Headlines: Preparing for the great wealth transfer
Alex Schlee, senior partnerships manager at Flagstone, said: “We know that savers are already changing their behaviour because of inheritance tax fears and our polling demonstrates the knock-on effect this action is having on advisers.
“A majority of UK financial advisers are having to quickly adapt to how they work not only for individuals but for numerous members of the same family, as these families get to grips with how wealth will be passed down through the generations.
“This is not a task that can be downplayed: in the next thirty years, £7trn will be passed down through generations.
“It’s fascinating to see that more than one in three advisers are handling more requests to discuss multi-generational strategies, and it follows that there’s greater demand for cash management too.
“Earlier adviser polling showed that almost 90% of advisers are having as many or more conversations about cash since last Autumn’s Budget when raising taxes on wealth was high on the agenda.
“Cash management is an intrinsic, common-sense part of any intergenerational savings strategy, providing competitive risk-adjusted returns outside of pensions and away from volatile public markets.
“We wait to see what role cash plays to assuage uncertainty when speculation around the next Budget begins this Autumn.”
