More than $1 trillion in assets will emerge by 2021 as older Australians transfer their wealth down to baby boomers and generations X and Y, according to Lifeplan Funds Management research.
Current estimates indicate that around $600 billion in assets will transfer down the generations by 2021.
However, those funds will be inherited by individuals who already have at least that amount in their own assets, effectively doubling the amount of funds advisers can capture, the research found.
Advisers wanting to position themselves in this growing market should plan now to capture a slice of those assets in an estate planning vehicle before their ageing client base passes on, Lifeplan Funds Management general manager of strategic development Matt Walsh said.
“The other challenge for advisers is to also capture the beneficiaries as clients rather than losing funds, as beneficiaries are notoriously difficult to approach following the death of their parents and/or grandparents,” he said.
To date there has been a lack of products and strategies for advisers to effectively capture their share of this burgeoning market. As a result, Lifeplan has launched NextGen Investments, Walsh said.
“NextGen Investments is an easy, low cost, tax-advantaged way for people to ensure their wealth is distributed exactly how they want it to be even after death.”
The product provides advisers with the benefit of retaining beneficiaries as clients which is an important outcome that is not easy to achieve with current offerings on the market, he said.
