The biggest concern of high net worth clients is planning for Inheritance Tax, according to new research from RBC Wealth Management.
RBC Wealth Management is part of Royal Bank of Canada which completed a £1.6bn takeover of UK wealth manager Brewin Dolphin, now known as RBC Brewin Dolphin, last September.
RBC Wealth’s survey found that IHT was the biggest Financial Planning worry for almost half of those aged 66+ (45%).
The second most significant concern for HNW clients was not knowing the amount of wealth they needed to maintain lifestyles in retirement and later life.
The third major concern was gifting without losing control or giving too much too soon.
Other key findings were:
- 72% across the age groups felt they needed guidance on taxation and efficient planning
- 33% of women were concerned about maintaining their lifestyles in later life vs 21% of men
- 82% of 35-54 year olds felt the need for guidance in educating the next generation about wealth management
The study found that younger respondents felt the weight of “responsibility” of managing and preserving wealth more than the older generations (80% of 25-34 year olds vs 37% of 55-65 year olds).
Female respondents also expressed more concern over the responsibility of managing wealth (61% vs 49% of male of respondents).
The research found that 76% of all HNWIs feel they need guidance for investment management, particularly female respondents. According to the survey, men are more confident than women when it comes to investment management and diversifying assets (60% vs 45%).
Nick Ritchie, senior director, wealth planning at RBC Wealth Management, said: “We continue to see the detrimental impact of low levels of financial education in the UK and the subsequent concern around managing, preserving and transferring wealth.
“Our research found that 82% of 35-54 year olds want support in educating the next generation whilst they themselves worry about the responsibility of managing and preserving their own wealth, with 35% feeling the need for more guidance. This concern is all the more magnified as we embark on the greatest generational wealth transfer in history against a backdrop of economic uncertainty and persistent cost of living pressures.
Katherine Waller, head of new sales delivery at RBC Wealth Management, said: “In recent years, we’ve increasingly seen diverging generational attitudes towards wealth management and how wealth should be invested.
“Now more than ever, it is crucial for wealth managers to adapt and offer highly personalised services to meet the diverse needs of clients. This includes forming multi-generational teams, using financial education to help resolve conflicts around wealth management and understanding what and whom else might influence decision making.
“Catering to a more tech-savvy generation, often with a higher risk appetite and greater focus on values, means carefully considering communication channels and how we engage with them.
• The survey was conducted in collaboration with Kantar in November 2022 with 600 UK-based respondents with a minimum of £500,000 in investible assets.
