Demand for support with long-term priorities across intergenerational wealth transfer, retirement, and estate planning is rising amongst financial planning firms’ clients, according to Saltus Partnership Programme and L.E.K. Consulting.

Research from its Financial Planning Growth Index, based on responses from 200 senior leaders at UK financial planning firms, found that retirement and estate planning (31 per cent) and passing on wealth between generations (31 per cent) were the top priorities for clients.

Third on the top priorities list was tax planning and mitigation, including managing capital gains, which was cited by 25 per cent of firms as a core client concern.

Clients were also increasingly dealing with new and/or rising costs, with 7 per cent of financial planning companies saying their clients were looking for support to contend with increases to private school fees, while around one in 30 were considering the financial implications of moving abroad.

To meet these increasingly complex and ever-changing client needs, 22 per cent of firms were placing a strong emphasis on improving operational efficiency, while 20 per cent were prioritising enhancing the client experience.

The report stated that these strategic priorities reflected a strong movement towards optimising service delivery and ensuring current and future clients receive a smoother, more personalised experience.

Looking at the sector’s longer-term view on technology, firms expected to see digital transformation, especially through artificial intelligence (AI), as a key enabler to meeting client needs over the next three to five years.

More than a quarter (27 per cent) believed AI would help simplify the advice process, while 17 per cent expected it to improve the client experience through enhanced digital tools such as portals and apps.

“The financial advice profession is undergoing a major evolution, driven both by client expectations and the possibilities created by new technology,” commented Saltus Partnership Programme relationship team head, Nick Heath.

“Whether it’s planning for retirement, passing on wealth or managing new financial pressures, clients want high-quality, personalised advice, and they expect a seamless experience when receiving it.

“Firms are recognising this and are rightly investing in both operational improvements and the technology that can help bring their service to the next level.

“The pace of technological change we are seeing at present presents both challenges and opportunities for firms, and many need additional support to help address both - whether through the implantation of scalable technology, regulatory support or investment in client experience.”

L.E.K. Consulting partner, Bronswe Cheung, added: “We are now seeing the impact of baby boomers retiring on outflows across the market, and the fact that intergenerational wealth planning is a top priority for advice firms and their clients reflects this. Firms moving to prioritise organic growth is key to offset these structural outflows.

“In this context, the most successful firms are those that maintain a sharp focus on client needs while embracing the tools and technology that allow them to serve those needs more effectively and at scale. This needs to be complemented with creative ways to bring new, younger clients into advice.”

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