Advice facing a 'participation gap' as majority exclude partners and family members

UK advice firms are facing a participation gap, as more than half of individuals (52%) say only one partner regularly attends review meetings, while 26% say adult children are not involved in financial planning at all. 

One in five advisers (21%) also say that beneficiaries are not involved in annual reviews, leaving wider family members outside of long-term financial decisions, the research from Scottish Widows and NextWealth reveals.

The findings suggest advice relationships are often still centred around a single primary contact. Over half (51%) of clients say they hold the adviser relationship in their name only. When it comes to meetings, nearly four-in-ten (37%) couples admit that whilst they try to attend meetings together, in practice only one party attends. Meanwhile, one in ten (10%) say they always go to meetings solo, preferring to update their partner afterwards.

There is also a gap in how some advice firms engage secondary partners. One in five advisers (20%) are not confident they understand the goals of their clients’ partners, while just 3% of advice firms have a defined a formal process for them.

While most are generally happy with their adviser – with 86% saying they would recommend their adviser to someone else – nearly a fifth (19%) say they do not feel recognised as an individual, and nearly half (48%) say their adviser sometimes uses terms and phrases they do not understand.

Jenny Davidson, intermediary wealth director at Scottish Widows, said: “Research points to the fact that advice can no longer be a one-person conversation. Excluding partners and family members risks weaker outcomes today and broken client relationships tomorrow. 

“There's a lot at stake here. Women are set to be the major beneficiaries of an estimated £7 trillion transfer of wealth over the next 30 years. Meanwhile, changes bringing unused pensions into scope for inheritance yax from April 2027 will make conversations across generations even more important.

“Advice firms that adapt their approach and engage partners, beneficiaries and wider family members earlier will be better placed to understand their clients’ needs, deliver stronger outcomes and build relationships that endure as wealth passes between generations.”