Inheritors struggle to act on financial advice: Survey

Australia's wealthy inheritors are making major financial decisions before they feel ready, with new research highlighting a gap between receiving professional advice and having the confidence to act on it.

Capital Group's research into the 'great wealth transfer' found 91% of inheritors globally made their first significant financial decision within three months of receiving an inheritance, yet only 18% felt very comfortable making decisions in the first few weeks.

In Australia, the pace was faster, with 52% making their first major decision within days or weeks. However, just 37% fully acted on the advice they received, compared with 48% globally.

The findings point to an opportunity for advisers as intergenerational wealth changes hands, with competing investment options and conflicting guidance leaving many inheritors uncertain about how to proceed.

Capital Group president for Europe and Asia Pacific client group Guy Henriques said the immediate demands of receiving an inheritance could outpace the time needed to establish a clear investment strategy.

"Our research shows that this pressure can lead to missed opportunities, with many wishing they had invested more of their inheritance," Henriques said.

Despite the challenges, 78% of respondents said an existing adviser relationship was particularly valuable when they inherited, while 88% said working with an adviser provided emotional support as well as financial guidance.

Australian investors also placed greater emphasis on returns, with 68% ranking strong financial performance among their top three priorities, compared with 57% globally.

They were more likely to invest inherited wealth in private equity, private debt or other private market funds at 37% against 25% globally.

Women were particularly likely to seek guidance through multiple channels. Nearly all Australian women surveyed (93%) used digital platforms, while 67% cited too many options or conflicting advice as a key challenge.

Capital Group head of client group Australia Jorden Brown said trusted advice could help inheritors navigate complexity and establish a long-term plan.

"Trusted financial advice can make a real difference, helping inheritors simplify complexity, make confident decisions and build a long-term investment plan," Brown said.
The study surveyed 1200 inheritors across North America, Europe and Asia Pacific, highlighting the challenge of turning an inheritance into lasting financial outcomes.