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.
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