It’s common for IFAs to discuss intergenerational planning in relation to pensions and wealth, but when it comes to protection, it’s a different story.
There’s still work to do in educating clients about the value of protection – not just for an individual client, but within the wider context of family finances too.
IFAs therefore have a duty of care to think about the bigger picture, considering the needs of the entire household and prompting their clients to do likewise.
In doing so, advisers can begin to normalise talking about protection as an essential part of family financial planning.
Is Covid-19 and remote working shifting the conversation?
The pandemic, and its impact on health, has made having these kinds of difficult discussions even more important.
Advisers can help to open up these kinds of conversations with the wider household rather than just with the client themselves – and having beneficiaries directly involved will ensure the protection plans reflect what the family needs.
Remote working and virtual calls have prompted advisers to start these more holistic, whole household consultations.
Research we commissioned recently found that half of IFAs said they had spoken to one or more of their clients’ family members or caregivers since the start of the pandemic.
As some advisers resume pre-pandemic working practices, it is important they do not overlook the some of the unexpected benefits of virtual consultations – including this wider engagement with clients’ families and dependents.
Shaping the conversation across generations
The role of advisers, when it comes to intergenerational planning, doesn’t stop at asking clients about their families’ needs, or even in inviting those family members into financial discussions.
Advisers have a crucial role to play in chairing these conversations, creating space for different parties to explore the issues, concerns, and the options available to them.
Family members of different generations will have varying priorities, meaning the conversation needs to be shaped to the individual client’s values and desired impact.
While older generations might focus on mortgage liabilities, younger family members might worry about how financial loss could impact any plans to go to university.
Having these conversations is not always easy and can be uncomfortable for people to talk about. But having them now – rather than when it’s too late and a family is struggling with not only loss but also financial hardship – is vital so we can avoid people finding themselves in these dire situations.
So, let’s keep talking to families like they were our own. By doing that we will keep building strong, long-term relationships based on trust and offering honest, open, expert advice.
And who knows we may just spark an interest in financial planning with younger members of the family and help a whole new generation to realise their goals.