Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers

0

Key priorities for those inheriting wealth include the need for a transparent fee structure, cited by 56% of respondents as crucial for maintaining the relationship with their wealth donor's adviser. Furthermore, a strong grasp of the inheritor’s specific financial objectives and an environment of trust built on honest communication are also essential to 54% and 53% of respondents, respectively.

Rita Da Silva, EY's regional wealth and asset management leader in Oceania, emphasizes the growing importance of digital capabilities for advisers hoping to attract younger clientele. Her insights reveal that 38% of local Gen X and 31% of Millennial investors prioritize access to advanced digital tools and technologies, as opposed to just 19% of Baby Boomers. This implies a need for wealth managers to tailor their services to a tech-savvy audience as they prepare to manage the next wave of investors.

The integration of AI is increasingly acknowledged as a vital tool in financial advisory services. Over half (56%) of Australian respondents expect some AI involvement from their wealth managers, with Millennials (72%) and Gen X (60%) demonstrating an even higher expectation. However, the uptake of AI tools faces trust issues, as only 29% of Australians express the same level of trust in AI as in human advisers, compared to a global average of 38%.

Though AI-powered financial platforms are emerging with regulatory guardrails, the Australian market shows a preference for a hybrid approach, blending AI capabilities with human oversight. Nearly half (46%) of Australians are reluctant to rely solely on AI-driven financial advice without human involvement, underscoring the enduring value of personal interaction in wealth management.

Two major concerns about AI adoption in financial advice are data privacy and security (52%), and the potential inaccuracies associated with automated tools (51%). Additionally, the absence of a human touch (51%) also raises hesitations, indicating that future developments in AI tools need to address these reservations to gain wider acceptance among Australian investors.

Published:Wednesday, 11th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

Auditor Deregistered After Brite Advisers Collapse 30 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more

US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns 23 Jun 2025: Paige Estritori The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more

Global Markets Brace for Oil Price Surge Following US Strike on Iran 23 Jun 2025: Paige Estritori The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more

Trump Mulls Change of Heart on Firing Fed Chair Powell 21 Jun 2025: Paige Estritori US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more

APRA Clarifies HELP Debt Considerations in Home Loan Assessments 20 Jun 2025: Paige Estritori The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more

Economic Unrest Spurs Increased Reliance on Financial Advisers 20 Jun 2025: Paige Estritori In the face of ongoing economic turmoil encompassing inflation, market volatility, and other financial stresses, a global survey from Natixis Investment Managers, conducted by CoreData Research, has highlighted a growing trend: investors are increasingly relying on their financial advisers. With 91 per cent of surveyed investors expressing trust in their financial advisers for investment decisions, this highlights an unmistakable shift amidst financial uncertainty. - read more