Advice relating to the Lifetime Isa would would generate more younger clients for advisory firms, Standard Life’s head of financial planning propositions has claimed.
Alastair Black said that as part of the advice process, the provider could see them saying to advisers ‘my children are trying to get on the housing ladder. They are thinking about this Lifetime Isa, can you help’.
Mr Black added that some clients might also discuss paying into their children’s Lifetime Isa. He said: “There’s a whole range of challenges for people in their 20s with regard to money. We could see clients speaking to advisers about this.
“The Lifetime Isa gives advisers a fantastic opportunity, because as part of conversations with those in their 50s and 60s, the transfer of money while they are still alive is possible.
“As part of the wealth transfer advice, clients are talking about bringing their children onto the housing ladder. There’s a bit of a perfect storm here, with the three elements [adviser, client and child] working together .”
Paul Lindfield, director at Manchester-based Sedulo Wealth Management, said that the Lifetime Isa presented a long-term opportunity for advisers.
He said: “If it is already an existing client, it could be beneficial with gaining clients. You need to distinguish between the existing client children, where there is an opportunity, and the general public, where funds can walk off.”