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

Investors Advised Against Overvalued Markets Amid Economic Uncertainty 18 Jul 2025: Paige Estritori In a market swayed by trade tensions and geopolitical uncertainties, investors are encouraged to remain cautious of inflated valuations. The mid-year outlook from Schroders warns against ignoring these issues, despite the market's surprising resilience to economic pressures. - read more

ASIC Penalises Two Licensees for Unregistered Financial Advice 17 Jul 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has taken enforcement action against two financial planning licensees for permitting unregistered advisers to provide personal financial advice. This regulatory action involved Sky Money Pty Ltd and Smart Financial Capital Pty Ltd, who were each required to pay infringement notice penalties amounting to $31,300 in early July 2025. - read more

Unemployment Rate Rises as Australian Labour Market Cools 17 Jul 2025: Paige Estritori Australia's strong labour market showed signs of cooling in June, with the latest figures from the Australian Bureau of Statistics revealing an increase in the unemployment rate to 4.3 per cent, up from 4.1 per cent in May. This slowdown in employment growth, with only a modest increase of 2000 jobs, adds to the pressure on the Reserve Bank to consider future interest rate cuts. The Reserve Bank had previously held the official cash rate steady at 3. - read more

Australia's Unsustainable Financial Outlook Raises Concerns 16 Jul 2025: Paige Estritori Recent admissions from the Treasury reveal Australia's precarious financial situation, with significant implications for the nation’s economic stability. A report from credit ratings firm S&P last month highlighted that the combined budget deficits of Australia’s state and federal governments total $52 billion. Furthermore, the country's net debt has already surpassed 60% of GDP, showcasing a challenging fiscal scenario. - read more

RBA Proposes Ban on Card Payment Surcharges 15 Jul 2025: Paige Estritori The Reserve Bank of Australia (RBA) has proposed eliminating surcharges on debit and credit card transactions, a move that impacts all major card providers such as Mastercard, Visa, and eftpos. As revealed in a newly released consultation paper, the RBA cites the $1.2 billion annual cost to consumers, highlighting inefficiencies and advocating for a unified approach to card payments. - read more