High net worth financial advisers: what are the benefits of working with one?
Wealthy individuals could benefit from specialist support from a high-net-worth financial adviser. We explore what you should know.
High net worth financial advisers specialise in helping individuals with £1 million or more in investable assets manage complex finances, reduce tax, and pass wealth to the next generation.
Far beyond building a suitable investment portfolio, a specialist high net worth financial adviser can get involved in many aspects of a client's financial life, from estate planning and business succession to retirement strategy and philanthropy.
High net worth individuals (HNWIs) can have complex finances, offshore assets, and sporadic income, so they need an adviser who specialises in this
HNW financial advisers usually have experience with tax planning, wealth transfer, business succession planning, investment management, and philanthropy
They often work with other professionals such as solicitors, accountants, property managers and corporate advisers for holistic financial planning
HNWI financial advisers may deal with family wealth, so they can guide delicate conversations. They are also skilled at protecting the privacy of high-profile clients.
What is a high net worth individual?
Although there is no agreed-upon universal definition, in the UK, a high net worth individual is generally defined as someone with between £1 million and £5 million in investable assets.
An individual may also be considered high net worth if they have a substantial monthly income, even without £1 million in investable assets.
What are the characteristics of a high net worth individual in the UK?
A HNWI could be an entrepreneur, a professional with a large number of share options in their company, or someone who has received a large inheritance.
If they have become a HNWI because of a sudden windfall such as an inheritance or the sale of a business, they might need advice on how to manage their new lump sum.
A high-earning HNWI might need financial planning related to a property purchase, retirement, or tax planning. Some HNWIs will have complex finances, perhaps involving multiple income streams from trusts, businesses, or properties, and assets or interests offshore.
HNWI income can be sporadic, for instance, if someone gets a large annual bonus or vests their company shares after five years. Sometimes people in this situation can struggle to get property financing, for instance, as their cash flow looks poor on paper.
Having a financial adviser who understands their income pattern and can explain it to specialist lenders can help their clients access property or business financing when they need it.
Some HNWIs will have a good level of financial knowledge while others won’t, and many will be short on time. Having a financial adviser to take some of the load of managing their money could be worth the investment for wealthy, time-poor individuals, whether or not they lack knowledge.
As with anyone seeking financial advice, some will want to retain control over their money management, while others will be happy to hand over the reins to an experienced professional.
Why is financial planning important for high net worth individuals?
Often, a top priority for HNWIs is managing their money tax-efficiently, including passing wealth on to the next generation without incurring a larger inheritance tax bill than they need to.
High net worth financial advisers will often use trust structures and make the most of gifting allowances to help their wealthy clients and their families keep more of their money.
Business succession planning might also be an important aspect of their advice, along with ensuring wills are in place.
Many high net worth financial advisers work closely with other professionals such as accountants, property managers, solicitors and corporate advisers to give their clients a joined-up, holistic service.
Where clients have a well-known profile, high-net-worth financial advisers must be able to act with discretion to protect their clients’ privacy.
Learn more: How many financial advisers are there in the UK?
How will the 2027 inheritance tax changes affect high net worth pension planning?
From April 2027, pension funds will be subject to inheritance tax for the first time, fundamentally changing estate planning for high net worth individuals.
From 6 April 2027, most unused pension funds and death benefits will be brought into the scope of inheritance tax, following the Chancellor's announcement in the Autumn Budget 2024.
Draft legislation is already progressing, and for those with substantial pension pots and other assets, the combined effect of income tax and IHT could see beneficiaries facing a considerably higher tax burden than under current rules.
These changes make specialist high net worth financial advice more important than ever. A high-net-worth financial adviser can help you review your estate plan now, considering whether to adjust how and when you draw on your pension, and what alternative structures may help mitigate the impact before the changes take effect.
What does a high net worth financial adviser help with?
Here are some of the key areas where a specialist high net worth financial adviser can help you:
Protecting your income and assets through insurance
Insurance is a critical component of financial planning for high net worth individuals, particularly where one person is the primary earner supporting an entire family.
A high net worth financial adviser will assess what cover is needed to protect income, assets, and lifestyle in the event of serious illness, injury, or death.
For business owners, the right insurance also protects the company from key-man risk.
If a business's profitability hinges on the skills of its founder and something happens to them with no protection in place, the value of the organisation could disappear overnight.
Investment management and portfolio strategy
Investment management is a cornerstone of high net worth financial planning, covering everything from portfolio construction to ongoing strategy review.
While some high net worth individuals are focused on growing their wealth aggressively, others prioritise capital preservation, particularly those who have recently sold a business or received a large inheritance.
A specialist high net worth financial adviser will assess risk appetite and match their client to an appropriate investment strategy, reviewing and evolving it over time as circumstances change.
According to Unbiased data, wealth management is one of the most sought-after advice categories in the UK, with 17,698 people seeking specialist help in the past year alone.
Helping you plan for a tax-efficient retirement
Retirement planning for high net worth individuals is about making wealth last across what could be a lengthy retirement, while minimising unnecessary tax along the way.
A high net worth financial adviser will assess pension drawdown strategies, sustainable income levels, and how to structure assets tax-efficiently in retirement.
With the planned inclusion of unused pension funds in inheritance tax from April 2027, retirement and estate planning are now more closely intertwined than ever, making specialist advice essential.
Giving to charity in a tax-efficient way
Charitable giving is an important aspect of financial planning for many high net worth individuals, and one that can be structured to be both personally meaningful and tax-efficient.
Specialist high net worth financial advisers often have expertise in this area, helping clients give to causes they care about in ways that may also reduce their income tax or inheritance tax liability.
Options can include donor-advised funds, charitable trusts, and Gift Aid arrangements.
Funding private school and higher education costs
Funding private schooling or higher education is a common financial planning priority for high net worth individuals with children or grandchildren.
A high net worth financial adviser can help structure savings and investments so that money is available at the right time, in a tax-efficient way.
This might involve junior ISAs, trusts, or gifting strategies, depending on the individual's wider financial plan.
What are the benefits of using a specialist high net worth financial adviser?
A specialist high net worth financial adviser will have worked with many clients with complex financial situations. They will be familiar with the risks to your wealth and the need to preserve and grow it over time using the right investment strategy.
A specialist high net worth adviser will understand the level of care and discretion needed when working with wealthy clients with a high profile, such as actors, sportspeople or politicians.
Where wealth is family money, there can be extra emotional attachments to it. HNWIs may feel a sense of responsibility to pass down wealth through generations in the right way, or manage a family business properly, and this is where an experienced financial adviser can help.
Guiding those difficult conversations about money within families can be an important part of their role as a trusted adviser – you might hear this referred to as ‘family governance.’
A high net worth financial adviser will aim to build relationships that last many years, and even span generations. As you can see, financial advisers may come to play a vital role for HNWIs and their families.
Unbiased can help quickly match you with a qualified HNW financial adviser who can look at your unique circumstances and help you reach your future goals.
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