Later life considerations including inheritance tax, gifting and not knowing how much is enough to maintain lifestyles are the top concerns for wealthy Britons, according to new research from RBC Wealth Management.
Across all generations, inheritance tax remains the leading concern, rising from 27% in the prior year’s survey to 35%.
The poll also found that wealthy Britons are worried about gifting without losing control or giving too much too soon, particularly among the 35-54 age group.
A further concern for those surveyed was not knowing how much is enough to maintain lifestyles in later life, against a backdrop of economic uncertainty, with 31% of those closest to retirement age citing this factor, as well as nearly a fifth (24%) of younger, pre-retirement respondents.
Nick Ritchie, senior director of wealth planning at RBC Wealth Management, said: “The survey results point to the wealthy re-evaluating later life priorities and wealth stewardship, a trend likely prompted by the UK’s uncertain political and economic future which could potentially alter the future landscape of intergenerational transfers.
“What is also interesting is that we’re seeing that the younger wealthy are showing the highest level of concern over wealth transfer.”
Wealthy investors are also concerned about changes to the capital gains tax, with those in pre-retirement ages (55-65) most concerned, RBC said.
The findings of the survey also shone a spotlight on the differences between sexes, with one in three (30%) women hesitating to apply for wealth management products due to a lack of understanding, compared with only 10% of men. More than four fifths (81%) of women also said they would benefit from more guidance, versus 67% of men.
Annabel Bosman, head of relationship management at RBC Wealth Management, said: “Against the backdrop of rising geopolitical tensions, increased volatility and higher for longer interest rates, we expect to see the wealthy continue to seek guidance from their wealth manager to build investment strategies and comprehensive plans to support their financial future.”
