Baby boomers look to switch benefactors' advisers: Natixis

Two-thirds of Australians don't plan to retain their parents' or spouse's financial adviser after they receive an inheritance.

According to Natixis Investment Managers' (Natixis IM) Great Wealth Transfer report, baby boomers, Australians aged between 62 to 80, are expected to cause the most disruption as 75% said they would switch advisers upon inheritance.

The survey interviewed 2700 financial professionals and 7000 individual investors globally, including Australia.

"As the great wealth transfer continues, advisers must engage clients in practical, forward-looking conversations about how best to manage and transition their wealth in today's complex economic and regulatory environment," Natixis Investment Managers country head for Australia and New Zealand Louise Watson said.

She added the current environment of heightened geopolitical uncertainty and ongoing changes to tax and super regulations reinforces the need for personalised advice.

Nearly 59% of generation X said they plan on leaving their benefactors' adviser, while 61% of millennials plan to make the switch.

"With no two clients, or generations alike, financial advice isn't a one size fits all approach," Watson said.

"Advisers who build strong relationships and understand generational differences will be best positioned to retain their clients and help them to navigate a path through market volatility, asset allocation and return expectations to achieve financial security."

Baby boomers remained the most conservative in managing wealth, with only 27% of them willing to take risks to get ahead. This cohort also saw just 26% invested in private assets and around 13% in cryptocurrencies.

Generation X and millennials on the other hand are more open to using market volatility as an opportunity to grow wealth. They also remain more open to private investments and cryptocurrency.

The report noted the need for advisers to bridge this generational gap with newer generations.