Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

18 June 2025

Home / Noticeboard 2025

Capital Group

  •   16 June 2025
  •      
  •   

Capital Group survey reveals implications of the 'Great Wealth Transfer'

Australian inheritors are open communicators on inheritance and invest less

Sydney, 12 June 2025: As the “Great Wealth Transfer” gets underway, inheritance patterns are shifting, with significant implications for wealth distribution and financial markets. Research from Capital Group, one of the world’s largest and most experienced active investment managers, with approximately US$2.8 trillion1 in assets under management, indicates that high-net-worth (HNW) families globally are accelerating the transfer of wealth to their heirs.

Engaging the next generation of wealth

  • Almost half (47%) of wealth holders in the study inherited directly from their grandparents, a majority (55%) having received between $1mn and $25mn. In Australia, a smaller proportion (40%) are inheriting directly from their grandparents.
  • Millennials globally are more likely to turn to social media and “finfluencers” for investment advice when they inherit (27%) than to financial advisors (18%). In Australia, AI tools for wealth management generate less enthusiasm (48% vs 62% globally).
  • 65% of Gen X and Millennial inheritors in the research say they have regrets about how they used their inheritance money, with nearly two in five wishing they had invested more.

Maximising inheritance potential

  • Three quarters of global wealth holders report challenges in communicating succession planning. While in Australia, a higher proportion (37%) report no problems communicating about wealth.
  • 61% said they rely on lawyers and 49% on accountants to handle succession matters, while only about 20% use financial advisers.
  • 79% globally will leave no specific wish on how inheritance must be used. APAC inheritors are even more hands-off (82%) in their succession planning; in Australia this rises to 92%.
  • The research points to inheritance money often sitting dormant or underutilised. On average, only 22% of inherited capital is invested in mutual funds and 11% in a pension fund. Australian wealth holders tend to invest less (29% vs 33%) of their inheritances.
  • 60% of wealth holders are unhappy about the way they used their inheritance, with one third regretting having underinvested.

Download full media release

 

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Latest Updates

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Superannuation

How to prevent excessive superannuation balances

There is an alternative, simpler approach which could be used to mitigate some of the difficulties that the proposed super tax has for holders of large assets such as properties, businesses and farms in SMSFs.

Shares

US shares: Ambitious multiples on ambitious EPS forecasts

Here's a detailed look at how current valuations and profit forecasts for the S&P 500 stack up versus history. The answer? Both seem excessive, making the market vulnerable to a correction or worse.

Taxation

Family trust tax: When is a loan not a loan?

A recent ruling could change the tax payable by beneficiaries of family trusts. If the ATO has previously demanded extra payments on unpaid present entitlements in your family group, you should watch this space.

Property

Things you must consider before subdividing a property

Subdividing can offer a lucrative first step into property development. Yet it comes with legal, planning and unexpected tax considerations that should be understood from an early stage to avoid surprises.

Investment strategies

5 insights that put market volatility in perspective

Though it may feel like this time is different, markets have shown resilience throughout history when confronted by wars, pandemics and other crises. In many cases, the best course of action has been none at all.

Strategy

Concerns about China's rise to power seem overblown

China has always managed its affairs in a very different way to Western countries and empires. For those concerned about China's rise as a global power, the big question is whether this approach could change.

Sponsors

Alliances

Site Map

About Firstlinks

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.