The most important concern of excessive internet price purchasers is planning for Inheritance Tax, in accordance with new analysis from RBC Wealth Administration.
RBC Wealth Administration is a part of Royal Financial institution of Canada which accomplished a £1.6bn takeover of UK wealth supervisor Brewin Dolphin, now often known as RBC Brewin Dolphin, final September.
RBC Wealth’s survey discovered that IHT was the largest Monetary Planning fear for nearly half of these aged 66+ (45%).
The second most important concern for HNW purchasers was not figuring out the quantity of wealth they wanted to keep up existence in retirement and later life.
The third main concern was gifting with out shedding management or giving an excessive amount of too quickly.
Different key findings had been:
- 72% throughout the age teams felt they wanted steering on taxation and environment friendly planning
- 33% of ladies had been involved about sustaining their existence in later life vs 21% of males
- 82% of 35-54 12 months olds felt the necessity for steering in educating the following era about wealth administration
The examine discovered that youthful respondents felt the burden of “accountability” of managing and preserving wealth greater than the older generations (80% of 25-34 12 months olds vs 37% of 55-65 12 months olds).
Feminine respondents additionally expressed extra concern over the accountability of managing wealth (61% vs 49% of male of respondents).
The analysis discovered that 76% of all HNWIs really feel they want steering for funding administration, notably feminine respondents. In response to the survey, males are extra assured than girls in relation to funding administration and diversifying property (60% vs 45%).
Nick Ritchie, senior director, wealth planning at RBC Wealth Administration, stated: “We proceed to see the detrimental influence of low ranges of economic schooling within the UK and the following concern round managing, preserving and transferring wealth.
“Our analysis discovered that 82% of 35-54 12 months olds need assist in educating the following era while they themselves fear in regards to the accountability of managing and preserving their very own wealth, with 35% feeling the necessity for extra steering. This concern is all of the extra magnified as we embark on the best generational wealth switch in historical past in opposition to a backdrop of financial uncertainty and chronic value of dwelling pressures.
Katherine Waller, head of recent gross sales supply at RBC Wealth Administration, stated: “Lately, we’ve more and more seen diverging generational attitudes in the direction of wealth administration and the way wealth needs to be invested.
“Now greater than ever, it’s essential for wealth managers to adapt and provide extremely personalised providers to fulfill the varied wants of purchasers. This consists of forming multi-generational groups, utilizing monetary schooling to assist resolve conflicts round wealth administration and understanding what and whom else would possibly affect resolution making.
“Catering to a extra tech-savvy era, typically with a better threat urge for food and larger give attention to values, means fastidiously contemplating communication channels and the way we have interaction with them.
• The survey was performed in collaboration with Kantar in November 2022 with 600 UK-based respondents with a minimal of £500,000 in investible property.