{"id":76728,"date":"2025-04-08T09:14:29","date_gmt":"2025-04-07T22:14:29","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=76728"},"modified":"2025-04-11T13:49:12","modified_gmt":"2025-04-11T02:49:12","slug":"intergenerational-wealth-dilemma","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/04\/08\/intergenerational-wealth-dilemma\/","title":{"rendered":"Intergenerational Wealth Dilemma"},"content":{"rendered":"
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Our report on a presentation by Acenda\u2019s Marshall Ross at Riskinfocus 25, where he spoke of the delicate balance pre-retirees face when it comes to helping their children, attracted plenty of reader interest this week…<\/h3>\n<\/div>\n<\/div>\n

Parents on the cusp of retirement are facing a significant dilemma as they seek to financially support their family without compromising their own financial security.<\/p>\n

This is one of the key issues addressed by Acenda<\/a>\u2019s Partner Education Manager, Marshall Ross<\/strong>, at Riskinfocus 25 events across the country last month.<\/p>\n

According to Ross, the \u2018mums and dads\u2019 of Australia act as the fifth biggest lender in the nation, reflecting the fact that more than 700,000 people \u2013 who hold 49% ($35bn) of the country\u2019s wealth \u2013 are retiring within the next five years.<\/p>\n

\u201cThey want to help their children and grandchildren, but not compromise their own financial security,\u201d said Ross. \u201cThey face a conflict.\u201d<\/p>\n

In the past, he said, the next generation typically fared financially better than their parents. But that has flipped. Parents are looking for ways to help their children.<\/p>\n

\"Marshall
Marshall Ross at Riskinfocus 25.<\/figcaption><\/figure>\n

It\u2019s a confusing picture though, as stats presented by Ross show three-quarters of parents want to support their children and grandchildren financially, 70% don\u2019t want to compromise their lifestyle, and 80% don\u2019t want to downsize to release funds.<\/p>\n

\u201cOur objective as advisers is to protect their retirement as well as their kids\u2019 future. That\u2019s what differentiates advice from order taking,\u201d he said.<\/p>\n

With regard health insurance he pointed out that with people now regularly living into their nineties, one option to lower their outgoings is to narrow health insurance coverage to reduce premiums.<\/p>\n

\u201cYour premier and plus contracts cover about 540,000 conditions, but your standard contract still covers the two that cause 90 percent of claims \u2013 cardiac conditions and cancers,\u201d said Ross.<\/p>\n

\u201cIt\u2019s about allocating budgets to get the most bang for their buck in those critical areas that might impact retirement savings.\u201d<\/p>\n

However, he made it clear the future growth of any advisor business is with their clients\u2019 children, and that advisers should consider ways to bring them into the fold.<\/p>\n

\u201cIf our clients are in de-accumulation mode, your business is in de-accumulation,\u201d said Ross. \u201cThe way to arrest that is to engage these people and go into growth mode.\u201d<\/p>\n

To do this, he suggests advisers carry out:<\/p>\n

    \n
  • Financial health checks<\/li>\n
  • Beneficiary meetings<\/li>\n
  • Mapping the family tree<\/li>\n
  • Offer basic financial literacy courses<\/li>\n
  • Help clients understand the likely impacts of the risks they face<\/li>\n<\/ul>\n
    \"Marshall-Ross-Retirement\"
    Data and graphic \/ Marshall Ross<\/figcaption><\/figure>\n

    However, advising families doesn\u2019t come without risks.<\/p>\n

    \u201cFrom an ethics perspective we need to be careful about Standard three and Standard two around conflicts and acting in the interests of all clients,\u201d said Ross.<\/p>\n

    \u201cWhen we are delving into insurance benefits and estates, they are a zero sum game. If one person gets more money than the other you risk conflict.<\/p>\n

    \u201cWe need to be careful when advising members of the same family as there is an inherent conflict that needs to be managed.\u201d<\/p>\n

    In addition Ross touched on the transition from commission to a mixture of commission and advice fees illustrating how a single client could generate around $18,000 in income over a 10 year relationship. Crucial for business succession plans.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Our report on a presentation by Acenda\u2019s Marshall Ross at Riskinfocus 25, where he spoke of the delicate balance pre-retirees face when it comes to helping their children, attracted plenty of reader interest this week… Parents on the cusp of retirement are facing a significant dilemma as they seek to financially support their family without […]<\/p>\n","protected":false},"author":23,"featured_media":76727,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,241,6994,4587,8281,8290,8291,5121],"tags":[],"class_list":["post-76728","post","type-post","status-publish","format-standard","has-post-thumbnail","category-company-news","category-conferences-and-events","category-education","category-estate-planning","category-health-wellness","category-riskinfocus-25","category-story-of-the-week","category-sustainability"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/76728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=76728"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/76728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/76727"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=76728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=76728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=76728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}