Aussies remain underprepared in succession planning

intergenerational wealth wealth transfer retirement planning inheritance planning estate planning HLB Mann Judd

12 October 2023
| By Jasmine Siljic |
image
image
expand image

This financial adviser is urging families to engage in more financial discussions around legacy planning and personal finance. 

Brendan Bate, a financial adviser at HLB Mann Judd, has outlined why succession planning needs to be of greater discussion between families. 

Australians’ financial planning horizon often finishes at retirement, with questions such as “When can I stop work?” And “Have I got enough super?”, Bate wrote.

“Another huge problem here in Australia is that there is a societal shroud of secrecy when it comes to personal finance. We don’t talk about it with each other – only about a third of parents apparently discuss it with their kids – and even if there are discussions, they are not backed by action,” he added.

Research from YouGov commissioned by Findex recently highlighted that advisers are critical to prompting and guiding these intergenerational conversations. 

One in five of those surveyed said that receiving advice on how to involve family members in financial discussions, as well as having a trusted adviser to facilitate these conversations, would encourage them to engage in regular financial dialogues. 

However, new research by Generation Life revealed that less than a quarter of Australians over 50 actually have a plan in place on how to leave behind an inheritance.

With Baby Boomers currently holding $4.9 trillion in assets and an estimated $224 billion to be passed on each year in inheritance by 2050, Bate pinpointed that up to 70 per cent of families could lose their wealth by the second generation. This could grow up to 90 per cent by the third generation.

“It’s fair to say the transfer of wealth has historically been done poorly and we still have a long way to go.

“Many older Australians are clearly underprepared and so are the children. The reality is that, in general, financial literacy is low through little fault of their own and I remain bewildered and concerned that Financial Planning 101 is not taught in school and first year university.”

The adviser encouraged dinner table conversations amongst families to discuss legacy planning, including philanthropic wishes.

Bate continued: “Don’t let the first hint of this be at the reading of a will.”

With intergenerational wealth discussions playing a crucial role in educating and preparing younger generations, he urged Australians to not leave it too late. 
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 19 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

4 days 16 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

4 days 17 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

6 days 16 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND