Two-thirds (67%) of people whose parents have a financial adviser also use the same adviser, according to new findings from Prudential UK.

The retirement planning expert suggested this means there is a “huge potential” for advisers to target different generations within one family.
 
A new report from Prudential UK, titled Family Wealth Unlocked, also revealed that 43% of respondents said they would feel relaxed about using the same adviser as their parents, while a 34% said they would trust them, and they’d feel relieved.

However, while many families share the same adviser, Prudential UK said its findings highlight a big opportunity for IFAs to bridge the advice gap. The research, based on a representative sample of 1,000 advised families, showed that 33% of people whose parents have a financial adviser do not also use them.
 
The report, which looks at intergenerational planning and wealth transfer between advised families amid the financial volatility of the pandemic, found that respondents favoured instructing advisers for their distinct needs, in place of shared family-wide goals.

Prudential UK highlighted this to explain why its report also showed that 49% of those who have used the same adviser as their parents prefer to pay for the financial advice separately.

“Families are becoming increasingly aware of their legacy and wealth transfer,” Prudential UK director of specialist business support, Vince Smith-Hughes, commented. “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.”

The study also indicated a broadly positive approach to discussing finances openly within families. Almost half (47%) admitted to “talking openly to each other about finances”, while only 7% revealed they “don’t trust their family members”.
 
Prudential UK’s report showed that 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.
 
Smith-Hughes added: “Clearly there is still room for improvement as around a third of people don’t currently have a ‘family adviser’, and with £5.5trn set to pass to the next generation over the coming years, this is an issue that advisers must help to tackle.”

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