HNWIs face gaps in retirement and succession planning
| Research shows a third of European HNWIs are yet to make a financial plan for retirement | 80% of survey respondents plan to pass wealth to their children, but only 34% have a plan in place | Over half of respondents are focused on growing their wealth through investing in equities and/or real estate |
Many high-net-worth individuals (HNWIs) have yet to establish retirement or succession plans, even though they remain confident about the growth of their personal wealth, according to a study1.
Research shows a third of European HNWIs are yet to make a financial plan for retirement. While those who have started a retirement plan, half said that they do not have a fully formed plan in place. And while 80% of survey respondents plan to pass wealth down to their children, only 34% have a full succession plan in place.
With over three quarters (78%) of HNWIs expecting their personal wealth to rise over the next five years, it’s surprising that many HNWIs fail to have plans in place for their retirement and succession. The study found that multigenerational HNWIs who had inherited wealth were more likely to have at least started planning for retirement than first-generation HNWIs.
Taking a closer look at HNWIs’ investment strategies, over half of respondents are focused on growing their wealth through investing in equities and/or real estate to support this long-term objective.
1BlackRock, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.