Capital Group study reveals confidence gap in wealth inheritance

A study by Capital Group, conducted by Financial Times Longitude, highlights a significant confidence gap among individuals participating in the “great wealth transfer.” Research involving 1,200 high-net-worth and ultra-high-net-worth individuals across North America, Europe, and Asia-Pacific shows that while 91% of inheritors make their first significant financial decision within three months of receiving an inheritance, only 18% feel “very comfortable” doing so in the first few weeks.

Many inheritors face immediate legal, tax, and administrative pressures. This haste often leads to regret; 60% of respondents expressed a wish that they had invested more in securities or retirement accounts, and only 19% reported being fully happy with how they utilized their inheritance. Nearly half of those surveyed cited conflicting advice or an overwhelming number of options as primary challenges.

Professional guidance remains a critical factor, with 96% of inheritors seeking professional advice. In the Asia-Pacific region, 92% of Gen Z inheritors have already established relationships with financial advisers, though 66% of those surveyed found a new adviser specifically upon inheriting. While 70% of respondents noted that early professional advice shaped their investment decisions, fewer than half actually acted fully on the advice they received.