The world is on the brink of an unprecedented transfer of wealth. A notable World Wealth Report¹, which gauges the opinions of over 6,000 global high-net-worth individuals (HNWIs), highlights a ‘staggering $83.5tn in wealth’ will pass to younger generations by 2048. Other research suggests the figure could be even higher. In the UK alone, around £7tn is forecast to transfer between generations by 2050.

The report, entitled ‘Sail the great wealth transfer,’ explores the transformation of the wealth management landscape as Gen X, Millennials and Gen Z are set to take control of this growing pool of assets. Strong equity market performance has driven sustained growth in HNWI wealth, further increasing the value of assets likely to be passed on.

The scale of this transfer brings challenges. Research shows that up to 70% of wealthy families lose their wealth by the next generation and as many as 90% by the third. Without careful planning, wealth can quickly erode through poor decision-making, tax inefficiency and lack of financial education.

This is where proactive advice and structured planning play a vital role in preserving wealth.

Transferring wealth is about far more than handing over a lump sum. It’s about securing your family’s long-term financial wellbeing, aligning wealth with your values, and preparing future generations to manage it responsibly. Open communication is essential, even if conversations about money feel uncomfortable at first. Being transparent about your intentions, goals and expectations can help prevent misunderstandings and conflict later on.

Breaking the process into manageable steps can make it far less daunting. We can support you at every stage, including:

• Identifying your beneficiaries and clarifying who you want to benefit

• Selecting the most appropriate wealth transfer structures, such as trusts and lifetime gifting

• Developing a tax-efficient strategy to minimise Inheritance Tax (IHT) and other liabilities

• Facilitating family discussions to ensure everyone understands the plan

• Helping educate future beneficiaries so they are prepared to manage their inheritance

• Reviewing and updating your plan regularly to reflect changing circumstances

Proposed changes to the IHT treatment of pensions from April 2027 may accelerate the pace of wealth transfer. This makes now an ideal time to review your plans and consider whether lifetime gifting or other strategies could help reduce future liabilities.

With the right guidance, the great wealth transfer can be more opportunity than risk for your family.

¹Capgemini 2025

• IHT is a tax charge based on the value of someone’s estate when they die, though currently any transfer to a surviving spouse or civil partner is exempt

• An estate includes property, savings, investments, personal possessions and other assets held in the deceased’s name

• Currently, estates worth more than £325,000 may be taxed on the amount above this level

• The standard IHT rate is 40%, although this can reduce to 36% if at least 10% of the estate is left to charity

• There is an extra allowance (£175,000) when leaving a main residence to direct descendants (children, stepchildren or grandchildren), which can increase the tax-free amount

• The tax is usually paid by the executor(s) of the estate before assets are distributed to beneficiaries

• Making lifetime gifts, within certain rules and allowances, can help reduce the value of an estate over time

• In some cases, placing assets into trusts may help with passing on wealth while keeping a level of control, but this can be complex

• Planning ahead may help reduce the amount of tax due, but the rules can be complicated

• Seeking professional advice can help ensure you understand your options and make informed decisions for yourself and your family

Gifting and trust strategies can have tax implications and may not be suitable for everyone.

How confident do you feel as an investor? There are so many factors that can impact confidence, from level of knowledge and experience to market movements and professional support. Psychologically, your approach to investing is inextricably linked to your emotional state and cognitive biases – are you overconfident, are you risk averse, perhaps you tend to follow the herd or can sometimes be irrational with decision making? Success in financial markets can hinge on so many factors.

A recent ‘Investor Confidence Barometer,’⁴ which has surveyed 1,000 adult investors holding a pension and investable assets of least £100,000, has provided some interesting insight.

Some of the key findings suggest that investors are generally confident about their finances this year and plan to boost their contributions. However, many have an emotional reaction to market movements, which may impact their long-term plans and discipline.

Some investors admit to having made mistakes in the last year, with main issues including taking too little risk (24%) and taking too much risk (18%). Non-advised investors have a tendency to over-allocate to cash, they exhibit lower levels of confidence and are more likely to react emotionally to headlines. Meanwhile, some 22% of non-advised investors have reacted emotionally to markets, compared to just 13% of advised investors.

There is an interesting division between advised and non-advised investors, with almost three quarters (74%) of those taking advice planning to increase their contributions over the year ahead, versus half of non-advised investors. Those who take advice seem to have a ‘deeper investable capacity and long-term strategy’ adding higher amounts (£38,983 versus £25,908 on average for non-advised).

The constancy of advice

The report findings highlight that investors are clearly still seeking ‘the human connection that in-person advice brings to the table’ reinforcing the vital role of advice in changing behaviours to improve people’s long-term outcomes. The findings suggest, ‘As economic uncertainty, technological transformation and regulatory change collide, the role of advisers as a trusted partner to clients holds true.’

We can help you maintain discipline and focus to help you work towards effectively achieving your long-term financial ambitions.

⁴Scottish Widows 2026 (survey conducted prior to the Middle East conflict)

• Almost two-thirds of investors (62%) are looking to increase their investments over the next year

• Long-term planning is the main driver for those intending to increase contributions (67%), followed by expectations of strong returns (47%)

• Adviser guidance influences 43% of those increasing investments and is the single biggest driver (60%) among advised investors

• Over three quarters of investors (77%) are confident about achieving portfolio growth – falling to 61% without adviser support, ‘highlighting the critical role of advice in converting confidence into outcomes’

• Confidence in retirement funding rises from 68% for non-advised investors to 82% for those receiving advice

⁴Scottish Widows 2026 (survey conducted prior to the Middle East conflict)