The majority of advisers are concerned about losing assets in the 'great wealth transfer' when trillions of pounds are expected to be handed down to future generations.
The latest Scottish Widows investor confidence barometer found this was a concern for 91 per cent of advisers.
More than half of those surveyed said they only expected to retain services for a minority of their clients’ dependents upon the death of the client.
The latest biannual survey spoke to more than 1,500 people over 10 days in September, including just over 500 financial advisers whose firm has assets of less than £500mn.
While 74 per cent of advisers said they had an intergenerational planning strategy in place for the majority of their clients, it leaves around a quarter who do not yet have a clear strategy for their clients’ wealth transfer plans.
Scottish Widows said advisers should look at engaging with the children of their clients, but the survey found just 17 per cent have done so.
However, there are hurdles to overcome in doing this – 70 per cent of advisers said scepticism of younger generations towards the value of financial advice was the greatest barrier to dealing with clients’ dependents.
Although almost half of advised clients surveyed said they would be willing to pay for advice for thier children.
The survey found that 41 per cent of advisers only talk about estate planning at or after retirement, with 16 per cent waiting until after their clients are into their 70s or older.
Ranila Ravi-Burslem, Scottish Widows, intermediary distribution director said: “Intergenerational planning is such an important topic, and it’s one that we’re really committed to supporting our advisers on.
"Our survey results suggest that there is scope to dial up engagement with dependents but, crucially, emphasises the need to have earlier conversations with clients about estate planning.
“With the ability to pass pension wealth down the generations, advisers must ensure their clients not only have their beneficiary nominations in place, but that these are regularly reviewed as circumstances and priorities can change. Advisers should also to look to engage with named beneficiaries early, so that things run smoothly when a client’s family most needs it to.”
tara.o'connor@ft.com
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