Financial advisers remain confident about their growth prospects despite concerns about the impending “great wealth transfer”, according to analysis from Natixis Investment Managers (IM).

Its study found that nearly half (46%) of advisers felt the upcoming large-scale transfer of wealth posed an existential threat to their business.

Furthermore, 43% were worried that they will not retain assets from their clients’ spouses or children, while a third (33%) had lost ‘significant’ assets through generational attrition.

Despite these concerns, alongside long-term demographic challenges and short-term economic risks, advisers were optimistic about their prospects and anticipated an average of 11.5% growth on a one-year basis and an annualised growth of 12.4% over the next three years.

Natixis IM found that financial advisers were making retention and prospecting key priorities ahead of the great wealth transfer.

Overall, advisers reported retaining client relationships 72% of the time when a spouse inherits, although this fell to 50% when a child inherits.

To help improve retention, 82% said they were regularly discussing family wealth planning with clients, as well as offering a range of ancillary services including trusts and estate planning (54%), personalised services such as career advice and networking (47%), and consolidating managed accounts (30%).

While advisers recognised the need to prospect for new clients, they currently only dedicate 9% of their time to it.

Furthermore, despite concerns about wealth transfer and asset retention, more than half (54%) were not targeting those aged between 18 and 34.

Instead, when it comes to prospecting, 72% said they were focused on those between the ages of 35 and 49, while 85% focused on those between age 50 and 59.

“Of all the challenges facing advisers, keeping current assets on the book is the most critical,” commented Natixis IM head of UK sales, Darren Pilbeam.

“Advisers now need to flex their strategies even more to appeal to the next generation of investors.

“Finding more time to deepen relationships with clients and financial planning service offerings will be crucial to the success of their businesses in the long run.”

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