Inheritors are making major financial decisions before they feel ready, increasing the risk of missed opportunities, new research from Capital Group has found.
While nine out of 10 (91%) inheritors made their first significant financial decision within three months of receiving an inheritance, less than a fifth (18%) felt very comfortable doing so in the first few weeks.
The firm said the findings highlight the role of financial advice in helping people navigate their choices and build a long-term plan for their wealth.
Guy Henriques, president, Europe and Asia-Pacific client group at Capital Group, commented: “Receiving an inheritance often brings immediate financial, legal and administrative decisions, before many inheritors have had time to decide what they want that wealth to achieve.
“Our research shows that this pressure can lead to missed opportunities, with many wishing they had invested more of their inheritance. Trusted financial advice can make a real difference, helping inheritors simplify complexity, make confident decisions and build a long-term investment plan.”
Findings from Capital Group’s research showed only 19% of people are fully happy with how they used their inheritance, with 60% wishing that they had invested more in securities or retirement accounts.
Nearly half (49%) cite too many options or conflicting advice as among the biggest challenges they face when managing inherited wealth.
The research showed those in the UK make financial decisions faster than their global counterparts, with 50% making their first significant decision within weeks of receiving an inheritance, compared with 43% globally.
Earlier engagement with financial advice also appears to play a key role, with 79% of UK inheritors saying it shaped how they used and invested their inheritance, versus 70% globally. Around 88% said working with an adviser made them feel emotionally supported, not just financially advised.
Despite this, less than half (48%) of inheritors say they acted fully on the advice they received, falling to 42% among women.
Additionally, the research also revealed that the UK’s advice ecosystem is less tech-driven, with fewer inheritors using digital platforms (58% vs 67% globally) or AI to build financial knowledge (51% vs 62% globally).
Main image: milad-fakurian-iFu2HILEng8-unsplash
