Intergenerational wealth transfer is now a major priority for financial planning clients, with many also focusing on retirement and estate planning, according to the Financial Planning Growth Index from Saltus Partnership Programme and L.E.K. Consulting.
The research found retirement planning and estate planning, including passing on wealth, were the top client priorities at 31% each.
Tax planning and mitigation came next, highlighted by a quarter of firms.
Other client concerns included handling increased private school fees and, for a small number, the financial implications of moving abroad.
Additionally, financial planning firms have been investing in technology and improving operational efficiency to keep up with these changing client needs.
Around 22% of firms were focused on boosting efficiency, while 20% were working to improve client experience.
The research also found many firms expect digital transformation, especially the use of artificial intelligence (AI), to become key over the next three to five years.
More than a quarter of firm leaders believed AI could simplify giving advice, and 17% said it would improve digital tools such as portals and apps.
Nick Heath, head of the Saltus Partnership Programme relationship team, said: “The financial advice profession is undergoing a major evolution, driven both by client expectations and the possibilities created by new technology.
“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.”
Heath added: “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.”
Bronswe Cheung, partner at L.E.K. Consulting, said: “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.”
