Intergenerational advice will be a key focus for financial planners in the future as traditional clients such as baby boomers continue to shrink in number.
Australian Private Capital (APC) is an example of one financial planning firm that has decided to revamp its client value proposition model to target the children of their baby boomer client base.
“It just makes sense that … we should be trying to make similar relationships with their children,” APC senior planner Rob Sarafov said.
As a result, APC is in the process of developing a more structured model for intergenerational advice.
“We’d like to be more a driver of it rather than a mere recipient of it when it happens,” Sarafov said.
“The traditional target client of financial advisers is dwindling, the baby boomers are moving on and so it’s an important strategy to be able to access and cultivate a younger group of clients.”
In order to do this, APC has spent time defining the profiles of this younger pool of clients.
“From our perspective we need to be clear about what these people look like, for example, if they are the children of our existing clients they probably have a young family between the ages of 25-45 years,” Sarafov said.
“They either own a home or are saving for a deposit for a home … but they certainly have a lot of needs from an advice perspective, that is, they probably have debt and a great deal of the debt is probably non-deductible debt.”
