The Chartered Insurance Institute (CII) Group has warned that the UK financial planning profession remains underprepared for what it described as the largest intergenerational transfer of wealth in the country's history, with an estimated £5.5 trillion expected to pass between generations by 2050.
Findings from the CII Group’s Great Wealth Transfer Roundtable pointed to rising concern across the advice ecosystem, but also to a shortfall in practical, intergenerational strategies within firms that will be directly exposed to shifting client bases and changing risk profiles.
According to the study, a majority respondents acknowledged a clear risk of losing clients after a bereavement, an issue that has long affected insurers and intermediaries that rely on multi-decade relationships.
Despite that awareness, only 44% reported having a specific intergenerational advice strategy in place, and fewer than 40% said they had a defined approach to engaging adult children, who were identified as the hardest group to support once they receive an inheritance.
The CII report also highlighted the interaction between the Great Wealth Transfer and the UK's persistent advice gap. With only around one in 10 adults taking regulated financial advice, many inheritors are expected to make complex decisions without professional support.
That lack of advice can translate into cancelled protection policies, poorly timed encashment of investment-linked contracts and missed opportunities to use insurance-based solutions to address inheritance tax or protect family businesses.
The report indicated that the biggest obstacles to effective planning are behavioural rather than technical. Advisers cited difficulties in navigating family dynamics, encouraging open discussion of inheritance and end-of-life planning, and forming trusted relationships with adult children who may have limited interest in traditional advice models.
The CII's warnings come as firms adjust to the Financial Conduct Authority's Consumer Duty, which raises expectations around product design, value and ongoing support.
Life events such as bereavement, serious illness and the receipt of a significant inheritance are recognised as triggers for vulnerability, increasing regulatory scrutiny of how firms treat customers at these points. That means demonstrating they can identify and support vulnerable customers, including executors, widows and widowers and newly wealthy beneficiaries. It also means providing clear, accessible information at the point where control of policies or investments passes to a new owner, and ensuring that servicing and claims processes do not disadvantage inexperienced or distressed customers.
In response to the gaps identified at the roundtable, the CII is calling for greater collaboration between financial planners, insurers, other professional advisers and policymakers, supported by more robust research into the real‑world impact of unadvised inheritance.
The Institute’s priorities include improving cross‑sector standards and co‑ordination, strengthening protections against economic abuse, widening access to financial advice, developing practical toolkits for firms, and building an evidence base on the cost of unadvised inheritance.
Adam Harper, executive director of strategy, advocacy and professional standards at the CII Group, said the coming transfer would be pivotal for the sector's ability to support consumers.
“The Great Wealth Transfer represents a defining moment for the financial advice profession and the clients it serves. While awareness is growing, this report highlights the urgent need for coordinated action to ensure the sector is prepared to support consumers in this significant shift," he said.
Carla Brown, president of the Personal Finance Society, said the transfer represents both a business opportunity and a responsibility for the sector.
“The scale of the Great Wealth Transfer brings with it both profound responsibility and a significant opportunity for finance professionals. Too many families are still unprepared for the emotional and financial complexities that come with passing on wealth," he said.
The Great Wealth Transfer is expected to influence product development, distribution and customer retention strategies across life, pensions and wealth‑linked insurance. Insurers are already exploring how to adapt long‑term savings and protection products to appeal to younger generations, who often prioritise flexibility, sustainability and digital access.
Strengthening safeguards in this area may require insurers to refine identification processes, expand staff training and deepen collaboration with legal and welfare agencies.
