The amount of UK discretionary wealth looked after by held asset management firms rose by 11% in 2024 to a whopping £1.1 trillion*, according to a new report. But a significant chunk of that will have come from silver investors approaching or already in retirement. One reason for the rise was an increase in the number of financial advisors seeking to concentrate on planning clients’ income – and outsourcing investment strategy to large firms. But wealth managers say increased withdrawals of funds continued to be a concern. Reasons included: higher interest rates enhanced the attractiveness of short term cash savings; pressure on the ‘Bank of Mum and Dad’ to help children or grandchildren with property deposits, education fees or debt repayments, and changing inheritance tax rules that would mean older customers gifting more to their families to save them paying part or all of it.
*excluding funds held in private banks.
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