Inheritors face ‘confidence gap’ in Great Wealth Transfer

Inheritors face a confidence gap in the Great Wealth Transfer, with many making major financial decisions before they feel ready, according to a study from Capital Group.

Its research showed that 91 per cent made their first significant financial decision within three months of receiving an inheritance.

For 43 per cent of inheritors, the important decision happened within weeks, despite just 18 per cent feeling very confident making that choice.

Only 19 per cent were fully happy with how they used their inheritance, with 60 per cent wishing they had invested more in securities or pensions.

When managing inherited wealth, 49 per cent said there were too many options or conflicting advice.

Capital Group said the findings highlighted the role of financial advice in helping inheritors navigate immediate choices and develop a long-term wealth plan.

UK inheritors were making significant financial decisions faster than their global peers, with 50 per cent making their first major decision within weeks of receiving an inheritance, compared to 43 per cent globally.

Earlier adviser engagement seemed to be playing a key role, with 79 per cent of UK inheritors saying it shaped how they used and invested their inheritance, compared with 70 per cent globally.

More than half (58 per cent) of UK inheritors said they acted fully on the advice they received, while just 48 per cent of global inheritors said the same.

The study highlighted that the UK’s advice system was less tech-driven than its global counterparts, with fewer inheritors using digital platforms or AI to build financial knowledge.

Capital Group noted that while this suggested a more cautious approach to using technology for financial decision making, it also highlighted the importance of the adviser/client relationship.

“Receiving an inheritance often brings immediate financial, legal and administrative decisions, before many inheritors have had time to decide what they want that wealth to achieve,” commented Capital Group president, Europe and Asia-Pacific client group, Guy Henriques.

“Our research shows that this pressure can lead to missed opportunities, with many wishing they had invested more of their inheritance.

“Trusted financial advice can make a real difference — helping inheritors simplify complexity, make confident decisions and build a long-term investment plan.”

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