Inheritance tax is the biggest immediate concern for HNWIs across the UK, with those over 66 years old particularly worried.
45% of that age bracket are concerned about inheritance tax, but 72% of all UK HNWIs feel they need guidance on taxation and efficient planning.
This is according to research from RBC Wealth Management that surveyed 600 UK-based HNWIs.
The second greatest concern is not knowing the amount of wealth required to maintain lifestyles in retirement and later life. This was of great concern to UK HNWIs in pre-retirement ages (38%) and women (33% compared to 21% of men). However, younger respondents (17% of 25-34 year olds and 21% of 35-54 year olds) were less worried.
In addition, the third major concern was gifting without losing control. 30% of those aged over 55 were occupied with this compared to 17% for 25-54 year olds.
On the other hand, younger respondents felt the weight of responsibility of managing money (80% of 25-34 year olds compared to 37% of 55-65 year olds) more than others.
76% of all HNWIs felt they needed guidance for investment management, but men were more confident than women (60% vs 40%).
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.
“Ultimately whether young or old, newly wealthy or from well-established generations of wealth, there should always be a place to learn, grow and challenge what clients know about personal finance. Working with a wealth manager will help high-net-worth individuals on this journey and ensure that plans remain future-proofed and fluid in line with their evolving goals.”
Katherine Waller, head of new sales delivery at RBC Wealth Management, added: “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.
“At RBC, ensuring that we understand the purpose of our clients’ wealth has always been our highest priority.”