High net-worth clients aren’t getting the attention they deserve or the information about products and services available to them – at least in their minds.

Walter Zultowski

They want more information on asset allocation and products to support the fact that they are living longer, said Walter Zultowski, senior vice president of research and concept development for Phoenix Cos., which sponsored a study of high net-worth (HNW) household concerns.

“They fear they are going to outlive their assets,” Zultowski told IFAwebnews.com

These longevity products are so vital to this group’s plans that Zultowski sees a shift in how they will be handled. “I think you will see longevity planning could be carved out of financial planning,” he said.

Opportunities to be found

The HNW arena has always been one of most important and lucrative for financial service professionals, but the survey results indicate that opportunities have been lost — and still exist in the market.

Exactly 7% more HNW households were getting help from a financial service professional than last year, the survey found, with 73% of respondents saying they were getting financial advice this year.

A total of 29% of HNW individuals who participated in the Harris Online poll for the 2009 Phoenix Wealth Survey indicated they are either dissatisfied or seeking a new financial advisor. HNW households in the survey included those with more than $1 million in net worth, excluding their primary residence.

Their interest in obtaining financial planning advice may be a result of the fact that the majority of them “feel less wealthy” than they did a year ago, according to Zultowski. The recession and its effect on their stock portfolio and other assets were primary reasons for the change.

“They are more concerned about preserving wealth,” Zultowski said.

Seeking new guidance

A total of 13% of the survey sample of 1,735 households intend to replace their financial advisor, and another 15% are unsure if they will continue with their current advisor.

Of those seeking a new advisor, 31% said advisors were “not offering the products and services needed.”

Estate planning is lacking among the group. A total of 38% had no estate plans, with many saying they held off on making plans for their estates because of the ongoing debate over estate taxes in Congress. About 26% of those without estate plans said they were delaying because of Congress.

Zultowski called it an “ice jam” that will require help from financial service professionals in the coming months, especially with planned changes in how estate taxes are handled coming in 2010 and 2011.

The HNW group also lacks financial plans, with 39% saying they do not have a written financial plan.

This story originally appeared in the October 2009 print edition of Insurance & Financial Advisor.