Wealth managers in the UK are not focusing on the individually less rich, who actually control more than 50% (over £2 trillion) of the nation’s liquid wealth, according to a new study by Booz & Company.
The study also found that banks and wealth management firms are offering products and services to less than half of the wealth.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The UK’s households together had investable wealth of £4.2 million, Spear’s reported citing the study.
According to the study, there are 7.2 million families in retirement at the moment, but they are expected to be 10.6 million in 20 years, with their investable assets increasing from £1.3 trillion to £2.2 trillion.
The report findings revealed that 2.4% of UK families could be determined as wealthy, as they had investable assets of at least £1 million but together they constituted 63% of the nation’s liquid wealth.
An additional 12.1% of families were defined as affluent, holding assets between £100,000 and £1 million and they together controlled 28% of the liquid wealth in the country.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataJorge Camarate, author and a principal at Booz & Company, told Spear’s: "This one-size-fits-all approach doesn’t really work. If you look at the proposition of most financial firms, you don’t see a basic segmentation of customers that have very different needs."
The study noted that wealth managers did not pay attention on individuals who were approaching retirement as they had accumulated significant wealth by then individuals aged between 35 and 44 who were to enter earning phase but had not accumulated much wealth.
"The younger wealthy would have less assets and more income [than those in pre-retirement] – and if you want to target them you need to focus more on finding an investment strategy based on their risk appetite," added Camarate.
Camarate added that wealth managers can bring this level of segmentation further, including factors such as age, level and source of wealth and whether it is old or new money.
