Great Wealth Transfer: Equitable Study Shows Trust Is the Top Factor When Choosing a Financial Professional

Eight in 10 survey respondents plan to work with a financial professional after receiving a benefit or inheriting money

Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today released a new study, “How to Plan for the Great Wealth Transfer,” aimed at helping financial professionals better understand the characteristics and goals of those who stand to benefit from the great wealth transfer in the United States.

The U.S. is undergoing a seismic shift in demographics, known as “Peak 65,” with a record 11,000 baby boomers turning 65 every day. By 2030, more than $30 trillion in assets are expected to change hands as part of this transfer of wealth to surviving spouses and the next generation.¹

Commissioned by Equitable and conducted by The Wall Street Journal’s Intelligence unit, the study presents the key findings of a survey of 500 retail investors. The investors represented in the survey are household finance decision-makers aged 35-64. In general, these investors are high earners who anticipate receiving an inheritance or primary benefit of more than $100,000.

The study revealed that millennials will be among the biggest beneficiaries of this transfer in assets, with 57% of millennial survey respondents expecting to inherit $1 million or more. Further, the research found that surviving spouses, who are pre-dominantly pre-retiree women, will control most of the assets transferred in the next decade.

“Our research shows that large sums of wealth will change hands at historic levels, and the recipients are likely to look for a financial professional they can trust for support and guidance,” said Nick Lane, President of Equitable. “Financial professionals who can get ahead of this curve by deepening relationships with the entire family will not only be in a better position to serve their clients, but also future-proof their practices as this transfer of wealth unfolds.”

As financial professionals look to provide holistic planning support to inheritors of this great wealth transfer, Equitable’s survey uncovered the following key insights to help them build stronger relationships with their future clients:

• Focus on the needs of women – Much of the wealth women inherit will likely be in the form of a benefit following the death of a spouse. As stewards of their family’s wealth, women respondents value retirement planning and 90% look for a financial professional who understands their life goals beyond finances. Women respondents also want long-term support, with one in three looking for a financial professional who actively strives to build strong relationships.

• Engage with millennials – Millennial survey respondents have reached a crucial phase in their lives to plan for their financial futures. Most are in line to inherit considerable sums of money, while also advancing in their careers. Although millennial respondents tend to be more self-directed investors, it does not mean they don’t also want help. Nine in 10 said they trust the advice and decisions of financial professionals.

• Become the advisor of choice – Eight in 10 survey respondents plan to use a financial professional to manage their new wealth. However, only one third (33%) currently have a financial professional who they plan to work with after receiving a benefit or inheritance. This leaves a sizeable market that will likely seek to build relationships with a new financial professional to help them manage their money.

• Foster trust above all else – When searching for a financial professional, trust was universally the top factor noted by survey respondents. While some focused on fees and the range of products and services offered, 55% of respondents said that trust is the most important consideration when selecting a financial professional.

• Explain the benefits of guaranteed income – Financial professionals play a critical role in helping their clients better understand a broad range of financial strategies, including annuities. Seven in 10 of women respondents would consider annuities if they were recommended or offered by their financial professional. This number is even higher among millennial respondents, with four in five indicating they would invest in annuities if recommended by their financial professional or offered in a workplace retirement plan.

“Financial professionals deliver value that goes well beyond the numbers on a page,” added Lane. “While good financial professionals focus on assets, great ones ask about their client’s family dynamics, their purpose and aspirations, and their plans to leave a legacy. It’s critical to take a holistic approach and put the client’s needs and wants at the center of the financial planning process.”

Today’s announcement builds upon Equitable’s recently launched Let’s Plan How^sm platform, which helps financial professionals build their practices and improve client outcomes. “How to…” is one of the most searched terms on the internet, and the goal of this strategic program is to help increase Equitable’s brand affinity in the market. Visit the Let’s Plan How^sm page on equitable.com to learn more.

About the study:

The “How to Plan for the Great Wealth Transfer” study was commissioned by Equitable and conducted by The Wall Street Journal’s Intelligence unit. The study presents the key findings of a survey of 500 retail investors representing household finance decision-makers aged 35-64. Survey respondents have household incomes of more than $100,000 and a net worth of more than $100,000, who anticipate receiving an inheritance or primary benefit of more than $100,000. The gender breakdown is 60% women and 40% men. The breakdown by generation includes millennials (age 35-44) at 33%, Gen X (age 45-54) at 33%, and pre-retirees (age 55-64) at 33%. The survey was fielded June 18 to July 10, 2024.

About Equitable:

Equitable, a principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 3 million clients across the country. Please visit equitable.com for more information.

Variable annuities are long-term financial products designed for retirement purposes. In essence, an annuity is a contractual agreement in which payments are made to an insurance company, which agrees to pay out an income or a lump-sum amount at a later date. Variable annuity contracts are subject to market risk, including loss of principal. All guarantees provided by annuities are based on and subject to the claims-paying ability of the issuing life insurance company.

Reference to the 1859 founding applies specifically and exclusively to Equitable Financial Life Insurance Company. Equitable is the brand name of Equitable Holdings, Inc., and its family of companies, including Equitable Financial Life Insurance Company (NY, NY) and Equitable Financial Life Insurance Company of America, an Arizona stock company with an administrative office located in Charlotte, NC, issuers of annuity and life insurance products. Equitable Advisors Financial Professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN) and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.). GE-7060606.1(09/24) (exp.09/34).

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¹ McKinsey Study, “Women as the next wave of growth in U.S. Wealth Management.”

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