Protective Life Research Reveals Generational Wealth Transfer Risks…

Event summary

Protective Life Corporation released research identifying two critical periods of relationship risk during the Great Wealth Transfer: after the death of the more financially engaged spouse and when assets transfer to heirs.
Only 6% of future inheritors use the same financial professional as the person from whom they expect to inherit, highlighting a significant continuity challenge.
93% of future inheritors believe they understand their inheritance, but only 20% of future bequestors plan to make lifetime gifts to reduce taxable estates.
Protective developed a whitepaper outlining four actions for financial professionals to strengthen multi-generational relationships.

The big picture

The Great Wealth Transfer represents a $70 trillion shift of assets over the next few decades, making client retention and relationship continuity critical for financial professionals. Protective Life's research underscores the strategic importance of early engagement with multiple generations to mitigate relationship risks during transitions. The findings highlight a broader industry trend towards proactive, multi-generational financial planning.

What we're watching

Client Retention Strategies: How financial professionals will adapt their strategies to engage spouses, partners, and adult children earlier in the planning process.
Industry Response: Whether other financial services firms will adopt similar research-driven approaches to address generational wealth transfer challenges.
Regulatory Impact: The pace at which regulatory frameworks will evolve to support better continuity and transparency in wealth transfer processes.