This new report from UBS highlights financial advice issues for what it coyly describes as ‘modern’ families. We might call them blended, or non-traditional families. Whatever the form of words this is what we group in this category:
- Blended family: family with children from a prior marriage
- Same-sex couple: with or without children
- Multigenerational family: aging parent or adult child in the home
- Older first-time parents
- Single-parent family
- Unmarried couples with children
These now make up a large proportion of families as a whole. You may say that single-parent families are more common in low-income/low-asset households with less need of financial advice, but UBS tell us that in the United States these non-traditional families make up 34% of households even among the wealthy. In New Zealand these trends may not be as advanced, but a review of my contacts list with this in mind turned up plenty of non-traditional families among my colleagues, friends, and neighbours.
The implications for financial planning as a whole are interesting. Although UBS were not writing to specifically address insurance concerns it is not hard to identify policy ownership, estate planning, wills, trusts, and enduring powers of attorney as key issues. Unfortunately the number of financial advisers specialising in connecting insurance to these legal services effectively has always been low and based on my recent observations remains low.
But the rewards to advisers that can offer good services to these families are likely to be great. Families in this group are more worried about their financial planning and are less likely to have addressed it – partly because most financial planning is geared to traditional family types.
The report is well worth a read in full. Find it at this link.