Super-rich worry most about succession and inheritance, Knight Frank report finds
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Version 0 of 1. The super-rich of this world, defined as individuals with a personal wealth of $30 million or more, worry like the rest of us. The latest Knight Frank report has shown that money can’t solve all your problems. Succession and inheritance issues, wealth taxes as well as the global economy are among the top worries of the world’s wealthy. The majority of respondents said succession and inheritance are the biggest risks to creating and preserving money over the next 10 years. Some 50 per cent said taxes are likely to be their key concern over the next decade, closely followed by the state of the global economy at 47 per cent. The environment and anti-money laundering initiatives are the issues the super wealthy are likely to be the least concerned about for the next decade, the study finds. The world’s leading private bankers and wealth advisors manage assets for about 45,000 ultra-high-net-worth-individuals (UHNWIs) whose combined wealth is over $1 trillion. They spoke about their concerns for the Knight Frank annual wealth report. The number of super rich is likely to decline as the world enters a period of deceleration, spearheaded by China’s slowing economy and lower growth in commodity-exporting economies. Two thirds of respondents said their clients’ wealth had increased at a faster rate over the past 10 years than it would do over the next decade. “The number of newly wealthy will slow, and the UHNWIs will find it harder to grow their wealth,” Marc Cohen, regional managing director EMEA at Wealth-X, said. “The recent boom in wealth has heightened scrutiny on this group, not least as regards to tax. And with low interest rates around the world, and increasing life expectancy, retirement has become much more costly, increasing the challenge for UHNWIs to maintain and pass on wealth,” he added. Nearly 70 per cent of the respondents said their client’s philanthropic activities had increased over the past 10 years , with almost 80 per cent saying it would grow even further over the next decade. “In spite of these issues, philanthropy among the ultra-wealthy is at an all-time high and continues to grow. The ultra-wealthy are also increasing their asset allocation to passion investments such as fine art, and second homes overseas, enabling them to enjoy their wealth,” Cohen said. The super-rich continue to invest in classic cars and jewellery even as their wealth keeps shrinking, according to data provided by New World Wealth for the Knight Frank Wealth Report. The number of UHNWIs shrunk by 3 per cent, down for the first time in seven years There are now 187,500 super rich individuals globally, down from 193,100 in 2014. |