European high net worth individuals (HNWIs) are broadly confident about the future, but many have not yet started planning for it, according to The Rise of Generational Wealth: 2024 Quintet/BlackRock European Wealth Insights, a survey of HNWIs in Belgium, Germany, the Netherlands and the UK.
Among survey respondents who have not yet retired, one-third have not begun to make a financial plan for their golden years. Further, half of those who have at least started making a retirement plan say they do not currently have a full plan in place. Among such respondents, multigenerational HNWIs – meaning those with significant inherited wealth – are notably more likely to have at least started making a retirement plan than are their first-generation counterparts.
Similarly, while 80% of participating European HNWIs say they intend to pass their wealth on to their children, just 34% of these individuals have a full plan in place to do so. That includes 39% of respondents in Germany, 35% in the UK, 33% in Belgium and 29% in the Netherlands.
Survey respondents were also asked the appropriate age of their children/heirs to start talking to them about their wealth. On average, respondents said that 24 years old is the right age to start that conversation. The ideal age ranges from an average of 22 years old among UK respondents to an average of 27 years old among Dutch respondents.
Among all survey respondents with children/heirs, such conversations took place on average when their children/heirs were 21 years old. Among the same demographic, multigenerational HNWIs tend to disclose their wealth when their children/heirs are younger compared to their first-generation counterparts.
When it comes to investment strategies, more than half of European HNWIs focused on growing their wealth over the next five years are currently invested in equities and/or real estate to support their financial goals. By comparison, survey respondents focused on preserving their wealth are notably less likely to hold such investments in their portfolios.
Markedly, 43% of those focused on growing their wealth are currently invested in businesses to grow their wealth. By comparison, just 17% of those focused on wealth preservation are currently invested in businesses to preserve their wealth. Growth investors invest in different products to support their financial goals, including alternative investments (30%), currencies (25%) and/or commodities (24%).
According to this new survey by Quintet Private Bank, the Luxembourg-headquartered wealth manager, and BlackRock, the leading global asset manager, 78% of surveyed European high net worth individuals expect their personal wealth to increase in the next five years.
Multigenerational HNWIs are markedly more likely to expect their personal wealth to increase in the next five years than are their first-generation peers. Notably, female survey respondents are almost twice as likely as male respondents to believe their wealth will decrease over the next five years.
Among survey respondents who said they expect their personal wealth to increase over the next five years, the top reasons for their confidence are the anticipated positive performance of their investment portfolios and ability to successfully manage their wealth. Such confidence in those areas is notably higher among UK HNWIs than among their peers in Belgium, Germany and the Netherlands. It is also directionally higher among male survey respondents than among female respondents.
The survey also reveals a number of cultural differences among European HNWIs. Among all those surveyed, for example, HNWIs in the UK are markedly more likely than their Continental peers to agree that their own hard work and commitment has been instrumental to their success. UK HNWIs are also notably less likely to agree that their wealth is at least partly attributable to luck.
The introduction of The Rise of Generational Wealth: 2024 Quintet/BlackRock European Wealth Insights follows the signing of a 2023 cooperation agreement between Quintet and BlackRock and the launch earlier this year of the first in a series of Quintet multi-manager investment funds designed with BlackRock and available exclusively to Quintet clients.
“Together with BlackRock, we are delighted to share these insights into the hopes, concerns and aspirations of European high net wealth individuals,” said Chris Allen, Quintet Group CEO. “Amidst the greatest transfer of private wealth in history, we believe that understanding generational drivers and differences is more crucial than ever for organisations that help individuals and families to protect, grow and pass down wealth.”
Ivan Pascual, Head of EMEA Wealth Client Business at BlackRock, added: “The survey findings reinforce the importance of having comprehensive financial plans in place as well as a well-structured investment portfolio to grow and preserve wealth. For many this includes a sizeable allocation to alternative investments given the valuable role they can play in enhancing returns and providing access to unique opportunities.”
Research was conducted online between August 19-September 27, 2024, by Ipsos UK on behalf of Quintet and BlackRock. The survey was completed by 595 adults, aged 30 or over, who chose to take part in the research in the following countries: Belgium (114), Germany (147), the Netherlands (169) and the UK (165). Respondents were required to have at least £/€1 million in liquid/investable assets. Quota sampling was applied. Data has not been weighted. Further information about the survey methodology can be found here.
About Quintet Private Bank:
Quintet Private Bank (Europe) S.A., founded in 1949, is headquartered in Luxembourg and operates across Europe and the UK. Widely recognised as a private banking leader, Quintet serves wealthy individuals and their families, as well as a broad range of institutional and professional clients, including family offices, foundations and external asset managers. Quintet’s family of private banks includes:
For further information, please visit: www.quintet.com
For further information about Quintet Private Bank, please contact:
Nicholas Nesson
Group Head of Corporate Communications
Quintet Private Bank, Luxembourg
+352 4797 2065
nicholas.nesson@quintet.com
About BlackRock:
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.
For additional information about BlackRock, please visit www.blackrock.com/corporate
For further information about BlackRock, please contact:
Felicity Press
felicity.press@blackrock.com
+44 (0) 776 813 1709
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