Wealth managers are widely known for assisting the super rich with growing their wealth through investment. However, it has been revealed in a study by Booz & Company that wealth management companies tend to ignore those who are individually[/i] less wealthy, despite this sector of people actually accounting for more than half of the nation’s liquid wealth when combined.
Who Falls Into This Category?[/b]
A mere 2.4% of UK families can be considered wealthy as they have investable assets of at least £1 million, and this is the category usually targeted by wealth managers. However, 12.1% of families are considered ‘affluent’, having investable assets of £100,000 - £1 million, yet they find themselves unable to tap into the wealth management services offered by most companies.
What Does This Mean for Me?[/b]
This means that many ‘affluent’ people are missing out on the opportunity to grow their wealth – and consequently the country’s liquid wealth – as they are not being offered the same services as those who fall into the category of ‘wealthy’. If you’re considered to be affluent, then you could be missing out on the chance to grow your wealth through investment, meaning your affluence could be short-lived once you reach retirement age.
Those in Pre-Retirement Age Lose Out[/b]
Affluent individuals approaching retirement aren’t usually looking to acquire any new investments, but rather to look after what they’ve already got. Whether that’s money in pension funds or estates, wealth management services could be of great use to this demographic, but instead companies aren’t offering much assistance. This is despite the fact that this demographic is set to grow as the population gets older, meaning wealth management companies could lose out big time by not offering a comprehensive service to those of pre-retirement age.
Loss Will be Felt on Both Sides[/b]
Not only are affluent individuals losing out on the opportunity to grow or maintain their wealth, but wealth management companies are in fact failing to tap into more than £2 trillion by offering limited services to those in this demographic.
Following the results from the survey conducted by Booz & Company, things may just start to change in the industry and we could see some wealth management companies developing investment plans for the 12.1% of UK families that are considered to be ‘affluent’ but are currently losing out. This could be beneficial for both sides, and it will be interesting to see how the industry acts upon the news, if at all.
Now Might be the Perfect Time to Act[/b]
If you fall into the category of ‘affluent’ but are struggling to find the right wealth management service, it might be a good idea to give a few companies like High Street Wealth Management a call to discuss your options. You may not be being targeted by them, but it may be possible to enter into a negotiation process about what they can offer you. No doubt they’re already aware of the facts previously outlined and are looking to add people like you to their clientele.