New research released this week by RBC Wealth Management shows the top three concerns of high net worth individuals, such as around inheritance.

Research conducted by RBC Wealth Management shows that inheritance tax is the key concern of high net worth individuals, surveyed in the UK across age groups and gender. 

IHT particularly concerns almost half of those aged over 66, but 72 per cent of all respondents feel that they need guidance on taxation and efficient planning.

Not knowing the amount of wealth needed to maintain lifestyles in retirement and later life is the second greatest concern for HNW individuals overall, particularly for those in pre-retirement ages and women, 33 per cent compared with 21 per cent of men. This is less of a concern for younger respondents, the research reveals.  

The third major concern is gifting without losing control or giving too much too soon, particularly for those aged over 55. Nineteen per cent of people over 55 years old said they worry about transferring wealth to beneficiaries prematurely to help navigate the rising cost of living, compared with 22 per cent of people over 35 to 54 years old, the firm said.

The study found that younger respondents feel the weight of responsibility of managing and preserving wealth more than the older generation. Female respondents also expressed more concern over the responsibility of managing wealth. 

The research found that 76 per cent of all HNW individuals feel that they need guidance for investment management, particularly female respondents, but men are a lot more confident than women when it comes to investment management and diversifying assets.

Nick Ritchie, senior director of wealth planning at RBC Wealth Management, said: “We continue to see the detrimental impact of low levels of financial education in the UK and the subsequent concern around managing, preserving and transferring wealth.” 

“Our research found that 82 per cent of 35 to 54 year olds want support in educating the next generation whilst they themselves worry about the responsibility of managing and preserving their own wealth, with 35 per cent feeling the need for more guidance. This concern is all the more magnified as we embark on the greatest generational wealth transfer in history against a backdrop of economic uncertainty and persistent cost of living pressures,” he added.

“Ultimately, whether young or old, newly wealthy or from well-established generations of wealth, there should always be a place to learn, grow and challenge what clients know about personal finance. Working with a wealth manager will help high net worth individuals on this journey and ensure that plans remain future-proofed and fluid in line with their evolving goals,” he said.

Katherine Waller, head of new sales delivery at RBC Wealth Management, added: “In recent years, we’ve increasingly seen diverging generational attitudes towards wealth management and how wealth should be invested.

“Now more than ever, it is crucial for wealth managers to adapt and offer highly personalised services to meet the diverse needs of clients. This includes forming multi-generational teams, using financial education to help resolve conflicts around wealth management and understanding what and whom else might influence decision-making. Catering to a more tech-savvy generation, often with a higher risk appetite and greater focus on values, means carefully considering communication channels and how we engage with them.

“At RBC, ensuring that we understand the purpose of our clients’ wealth has always been our highest priority,” she said.

Royal Bank of Canada is a global financial institution with a principles-led approach to delivering leading performance. Meanwhile, RBC Wealth Management serves affluent, high net worth and ultra-high net worth clients globally with a full suite of banking, investment, trust and other wealth management solutions, from its operational hubs in Canada, the United States, the British Isles, and Asia, with nearly C$1.4 trillion ($1.05 trillion) of assets under administration and over C$991 billion of assets under management.