New research from British fund manager abrdn has found that generational differences in attitude towards money affect decisions while transferring wealth.
According to the research, 32% of baby boomers, who are between the age group of 55-73, are reluctant to transfer their wealth to someone whose attitude to money is not similar with them.
This might create issues for estate-related decisions.
The research also revealed that 58% people belonging to various age groups find it more important to make financial sacrifices for the sake of their future comfort, while 31% of the population favour spending their wealth immediately.
Moreover, 39% of the Gen Z population, aged between 16 and 23 years, were found to have opted for a short-term financial attitude than baby boomers (22%).
This gap in behaviour could affect the succession planning of older generations.
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A total of 90% of people are willing to transfer their wealth to family or friends during their lifetime or on death, found the research.
Out of these people, 51% plan to do so when they are alive, while 39% plan to do so after death.
Abrdn strategic director Jonny Black said: “This is the era of the ‘great wealth transfer’ – trillions are set to be passed into new estates in the decades ahead.
“While younger generations’ attitudes to money may be different to those older than them, they’ll still need support in managing any inheritance they receive in line with their financial priorities, whatever they may be.”