Asia risks succession crisis as wealth surges ahead of planning

Younger HNW individuals (aged 30–35) tend to prioritise equities (52%) and digital assets (33%).

Succession planning is lagging far behind Asia’s rapid wealth creation, even as a majority of wealth holders advance into later life.

According to the report by UOB Private Bank, Boston Consulting Group (BCG) and the NUS Business School, Asia’s private wealth is expected to reach US$99t by 2029, but noted that nearly half of first-generation wealth creators are not proactively preparing for intergenerational transfer.

With more than 60% of HNW individuals already above 60, the authors say the need for continuity planning is increasingly urgent.

The report highlighted a marked generational divide in investment behaviour. Younger HNW individuals (aged 30–35) tend to prioritise equities (52%) and digital assets (33%), whilst older generations (60+) overwhelmingly favour traditional investment properties, with almost 70% placing them among their top three asset classes.

Differences also extend to business leadership. 91% of first-generation wealth holders want management to remain within the family, yet almost one in four say their heirs lack interest in taking over.

Next-generation leaders are generally more open to professional CEOs running the business whilst the family retains ownership.

Succession is often triggered by circumstance rather than long-term planning. Founders cite health issues (37%) and business events (43%) as the main reasons succession discussions finally began, underscoring what the report frames as a reactive approach common across the region.

The authors recommend professionalising family businesses, establishing structured governance, addressing ownership design early, and deliberately transferring intangible assets such as networks and industry knowledge through mentorship and board exposure.

They argue that aligning wealth planning and business continuity is essential if Asian family enterprises are to preserve their businesses, legacies, and community impact across generations.