Wealth Transfer Presents Opportunity for Financial Advisers

A recent report from Equitable, “How to Plan for the Great Wealth Transfer,” reveals that Millennials and pre-retiree women who are surviving spouses are poised to manage the majority of assets that will come from the U.S.’s aging population.

According to Equitable, this generational shift in financial power presents an enormous opportunity for financial advisers to expand and solidify their practices by catering to the specific needs of these beneficiaries—but some groups may be more poised for advisement than others.

One of the biggest inheritors should be Millennials, with 57% of that demographic anticipating inheritance of at least $1 million, and 26% expecting at least $3 million. These wealth transfer expectations surpass those of Generation X and older generations, making Millennials a key demographic for financial advisers, according to Equitable’s survey of 500 retail investors, which was conducted by WSJ Intelligence, which is separate from the Wall Street Journal news division.

As beneficiaries of this wealth transfer, Millennials, especially Millennial women, are more likely to turn to financial advisers to help manage their finances, according to Equitable, but they are also demanding more personalized attention from their advisers. That holistic need holds true for pre-retiree women as well, 34% of whom expect to receive at least $1 million in inheritance. By 2030, American women are projected to manage a significant portion of the $30 trillion in financial assets held by Baby Boomers, according to research from McKinsey & Co.

The survey revealed that 54% of women currently work with financial advisers, and they overwhelmingly seek advisers who understand their individual goals, which often go beyond traditional financial planning. Advisers who demonstrate a deep understanding of these goals are more likely to build strong, lasting relationships with female clients, says Steve Scanlon, Equitable’s head of individual retirement.

Beyond the Numbers

Scanlon says financial wellness is not just about the numbers, but about a person’s vision for the future. Therefore, advisers should take the time to get to know what matters most to their clients.

“Advisers who dive deep into understanding their clients’ family dynamics, hopes, dreams, goals and concerns ultimately gain their clients’ trust,” he says. “They don’t just ask about assets— they ask about purpose. Understanding these personal details helps advisers not only develop financial strategies that truly support life’s biggest goals, but also gain the trust of their clients.”

The opportunity for financial advisers exists not only with Millennials and pre-retiree women. Almost half of all respondents (47%) reported they expect to receive at least $1 million through inheritance or as a primary beneficiary.

A broad majority—81%—of all respondents indicated they plan to work with a financial adviser to manage their inheritance or newly acquired wealth. However, only 33% plan to stick with their current adviser, signaling a significant opportunity for advisers to establish new relationships and win over clients who are seeking a fresh approach, according to Equitable.

Scanlon says advisers can help clients meet their long-term financial needs by focusing on a holistic financial plan that not only grows wealth, but also helps protect it. The most common challenges that people face in retirement are inflation, volatility and the fear of outliving their money.

“To help address these concerns, financial professionals play an important role in helping their clients understand a broad range of financial strategies, like annuities,” says Scanlon. “Annuities provide a reliable source of income during retirement, ensuring financial stability and peace of mind for individuals.”

Equitable was the fifth-largest retail annuity seller in the U.S., as of the second half of 2024, according to data from trade association LIMRA.

Plan Ahead

While 67% of those surveyed already have a written financial plan, only one-third developed it with the help of a financial adviser. This gap presents a chance for advisers to engage with clients who may have a basic plan in place but may also need expert advice to refine and optimize their strategies, Equitable wrote in the report.

Trust is crucial in these relationships. More than half (55%) of respondents cited trust as the most important quality they look for in a financial adviser.

More broadly, the pool of investors believes in having a diversified portfolio across multiple companies (85%) and prefers buy-and-hold strategy, rather than an active one (80%). Most are also highly engaged with their investments, with 78% reporting they like doing their own research on the best asset classes, funds, stocks and bonds in which to invest.

Equitable’s findings came from a survey of 500 retail investors, all household finance decisionmakers aged 35 to 64 with household incomes at least $100,000. The survey was conducted from June 18 through July 10.