"It appears the Covid-19 pandemic has been a contributing factor in bringing families together to talk more openly about their futures, consider their financial goals and begin planning accordingly."
Two-fifths (43%) of respondents said they would feel relaxed about using the same adviser as their parents, while a third (34%) said they would trust them and they’d feel relieved.
The report also found that respondents favoured instructing advisers for their distinct needs, in place of shared family-wide goals. This perhaps suggests why the report also showed that 49% of those who have used the same adviser as their parents prefer to pay for the financial advice separately.
Despite the need for a tailored approach to advice, the study pointed to a broadly positive approach to discussing finances openly within the family. Almost half 47% admitted to ‘talking openly to each other about finances’ with only 7% revealing they ‘don’t trust their family members’.
An unexpected windfall (24%) receiving an inheritance (24%) and preparing for retirement (23%) are the key scenarios most likely to prompt consumers to seek advice from a professional financial adviser.
Vince Smith-Hughes, director of specialist business support at Prudential UK, said: “Families are becoming increasingly aware of their legacy and wealth transfer. It appears the Covid-19 pandemic has been a contributing factor in bringing families together to talk more openly about their futures, consider their financial goals and begin planning accordingly.
“Our report also highlights how, especially for the younger generations, the need for financial support and guidance is most pronounced. It is hugely encouraging that many people are seeking the services of the same financial adviser as another family member at some stage during their life. And, with around 86% of those seeking advice actively doing so in the last five years, it seems the value of advice is increasingly being understood.”
“But clearly there is still room for improvement as around a third of people don’t currently have a ‘family adviser’ and, with £5.5 trillion set to pass to the next generation over the coming years, this is an issue that advisers must help to tackle.”
