Wealth transfer a critical topic for APAC advisers: survey

Sensitivity to talking about death and inheritance is named as the top challenge.

Nearly 1 in 2 of wealth managers and financial advisers in Asia Pacific are prioritizing wealth transfer discussions with their clients, according to a study by Schroders.

Advisers globally have identified wealth transfer as “highly important,” with 66% of the 1,755 respondents in Schroders’ study– 525 of which are based in APAC—saying this.

In APAC, 1 in 2 (57%) name wealth transfer discussions as highly important. However, the number of advisers that are speaking with their clients about it is lower, at 46%. Only 1 in 10 advisers from APAC have engaged all their clients in the topic, Schroders found.

“There is a real opportunity here,” the asset management company wrote in the Schroders Global Investors Insights Survey 2024.

“Tailoring structured solutions to regional needs, especially where formal wealth transfer strategies are lacking, can make a significant difference in supporting intergenerational wealth transitions,” Schroders said.

Over 8 in 10 (83%) of advisors globally said that engagement with spouses is important in wealth transfer planning, and 79% highlighted the importance of includin the younger generation.

Only 58% of advisors have a defined wealth transfer strategy, however.

Here, APAC lags with less than 48% implementing structured wealth transfer plans.

Challenges include sensitivity in topics such as death and inheritance. Over 1 in 2 (59%) of advisers in APAC named this as the top challenge.

Other top challenges by APAC advisors are the fear of losing a customer after wealth transfer (48%), and the challenge in getting their client to introduce them to the younger generation (48%).

Client disinterest is also a barrier, with 54% of advisors saying that their clients are not interested in wealth transfer discussions.