The report presents real-life case studies of inter-generational challenges and solutions for families.

Credit Suisse has partnered with a group called the Young Investors Organization to produce a report showing how families handle inter-generational wealth transfer. The topic continues to be a major issue in the industry. Among the report's findings is that 68 per cent of respondents say that families need more ways to communicate.

Creating a world with the Next Generation presents real-life case studies of inter-generational challenges and solutions for families. It also asks what this generational shift means for wealth managers. 

The publication stems from more than a decade of collaboration between Credit Suisse and the YIO, a network of heirs to entrepreneurial families across the world. The survey, conducted recently among YIO members globally and included in the report, quantifies the Next Generation’s views in terms of family, business, wealth and legacy. 

Some 59 per cent of those surveyed for the YIO report and 68 per cent said their families would benefit from more communications tools.

The majority of the next generation is interested but not invested in impact solutions, an area capturing considerable media and industry attention. The survey found that sustainable and impact investing is the asset class the next generation knows the least about - 56 per cent said their knowledge of impact investing is poor and only 8 per cent said their knowledge is excellent.

By “next generation”, the report refers to the inheriting generation, destined to take the reins of a business started by their parents, grandparents or earlier family members or those likely to inherit at least part of the wealth accumulated by previous generations.

“This is a generation with an ambition to create impact and one that wants to collaboratively create actionable solutions for the benefit of future generations. YIO was established in 2007 to support the Next Generation at important crossroads to become better family members, investors, entrepreneurs or social change makers,” Viola Steinhoff Werner, head of global next generation and families at Credit Suisse, said. She is also founder and general manager of YIO.

Authors of the report surveyed more than 200 next generation leaders from the Young Investors Organization and their families in 2018. The respondents represent various generations in terms of the origins of their wealth (62 per cent second generation; 30 per cent third generation; 8 per cent fourth generation or higher). Some 80 per cent of respondents are between the ages of 24 and 42 (Gen Y: 1977 – 1995) and the remaining 20 per cent are under the age of 23 (Gen Z: 1996 and later). The surveyed population was almost evenly split in terms of gender: 45 per cent female and 55 per cent male. The respondents are from across the globe, allowing us to identify both regional as well as global trends (Europe: 30.6 per cent; Asia: 28.9 per cent; Central and South America: 18.5 per cent; the US: 15.3 per cent; Africa: 4.8 per cent; Australia: 1.6 per cent). 

The YIO is a global organization consisting of the next generation of some of the world’s most entrepreneurial families.