03 Apr 2019
Posted in Insurance
28.3% of HNW clients’ children move their assets to a new provider when they inherit
After inheriting, 28.3% of HNW clients’ children discontinue the relationship with their parents’ wealth manager, according to GlobalData, a leading data and analytics company.
The company’s report: ‘2019: Trends to Watch in Global Wealth Management’ states that 38% of the global HNW population is above the age of 60, which equates to 4.3 million individuals. This means wealth managers need to have a strategy in place to appeal to the next generation of investors.
Heike van den Hoevel, Senior Wealth Analyst for GlobalData explains: “Reaching out to the next generation early on is critical, but wealth managers are not doing a good job.”
Results from GlobalData’s 2018 Global Wealth Managers Survey reveal that involving the next generation during the estate planning process is the single most effective retention tool. However, only 59% of wealth managers across the globe offer inheritance planning services directly.
van den Hoevel concludes: “Of course, discussing one’s mortality is a subject many would rather avoid. But if providers fail to ensure the continuation of the relationship with successors, this will amount to a significant chunk of their current business being lost.”