More than two-thirds (69%) of advisers don’t have a plan in place to tackle one of the largest ever transfers of wealth due to take place between generations over the next 20-30 years.

The so-called great wealth transfer will be worth £5.5tn over 30 years, according to estimates from The Kings Court Trust.

Research for Octopus Investments showed that more than half (52%) of investors said that their financial adviser hadn’t engaged with the beneficiaries of their estate.

Only a fifth (22%) of advisers think they should have different sales, fee structures or marketing strategies for different generations.

That left just a third (31%) of advisers with a strategy in place, which demonstrates the scale of missed opportunity for advisers, according to investment and energy provider Octopus.

Jess Franks, head of investment products at Octopus, said: “We are on the cusp of a seismic shift as the great wealth transfer occurs in the next couple of decades. There is also a clear generational divide, both in how advisers are engaging with clients’ beneficiaries, and in perceptions of the value of advice amongst younger generations.”

Almost half (46%) of advisers are concerned about losing assets under management in the event of a client death. In fact, 50% of advisers surveyed who have had a client pass away, estimate they have lost a range of £300k-£5m+ worth of assets under management.

According to advisers, the main reason behind not retaining the assets of a deceased client’s beneficiaries is that they believe beneficiaries would want to spend their inheritance (68%). However, for future plans, 79% of investors surveyed think that if they were to receive an inheritance, they would be likely to invest the money, showcasing a misconception among the adviser community and the significant value an adviser could provide to the next generation.

Ms Franks said: “It might seem like an obvious point, but you don’t want the first time you meet your client’s beneficiaries to be when your client has passed away. Depending on the age of the client, you’ll want to start building the relationship with their beneficiaries now.

“Help them understand the planning you are putting in place. Prepare them for the wealth that will come to them. The more engaged they are now, the more likely they will seek your advice when they inherit.

“Getting intergenerational planning right is key to protecting the value of your business.”

* Octopus via Opinium Research surveyed 1000 UK adults with investments partly or fully managed by an adviser and 200 UK financial advisers to uncover attitudes around intergenerational wealth. The survey was carried out in June.