Julius Baer and PwC Switzerland have released their “2024 Family Barometer,” which looks at the shifting opinions of financial services experts who work with and advise wealthy clients. It highlights topics which matter most to wealthy families this year such as tax.

The 2024 Family Barometer report by Julius Baer and PwC Switzerland shows that the main aim of affluent families globally has been on preserving and growing their family’s wealth, intergenerational wealth transfer, and succession planning.

This includes prioritising wealth transfer, taxation, political stability, growth, and family governance, recognising their role as stewards of their family’s legacy, values, and stability. Against the backdrop of heightened geopolitical tensions and fluctuating market conditions, family businesses are relying on the steadying hand of trusted advisors to preserve and grow their wealth, the report said. And this underscores why smooth wealth transitions to maintain family legacies and prevent potential conflicts are important.

“With some $19.4 trillion set to be passed down to children and grandchildren in the coming years, according to our analysis, it’s easy to understand how big an impact this shift will have on the lives of the receiving generations,” Roger Stutz, head of wealth planning at Julius Baer and Jürg Niederbacher, partner, leader private clients and family offices at PwC Switzerland, said.

“While the younger, tech-savvy family members are eager to influence family investments, the older generation often hesitates to relinquish control. Yet involving the next generation in business decisions and family discussions nurtures relevant skills and alignment with family values. Early involvement fosters strong relationships with wealth managers and ensures continuity,” they said

The Family Barometer, which has canvassed more than 1,800 internal and external experts from Europe, Asia, the Middle East, and Latin America, monitors the shifting opinions of financial services experts who work with and advise wealthy clients, .

The report highlights the desire of private banks to remind clients why their expertise at handling business and liquid wealth transfer, governance and succession are important value propositions. In the Middle East and Asia, for example, the rise of multi-generational dynasties owning businesses has created considerable work. 

Top five topics
Out of the top five discussion topics in 2024, the annual survey reveals that intergenerational wealth transfer and succession planning has moved up from second place to emerge as this year’s top family-related topic across every single region. This indicates that families globally are deeply concerned with ensuring a smooth transition of leadership and wealth to the rising generation. While the majority of respondents experience a fair level of transparency, there is still a need to enhance clarity and communication in wealth transfer practices.

The survey also shows that tax rose from second to first place as this year’s top societal-related topic. It is the top concern across Europe, Asia, and Latin America and the second-highest priority in the Middle East, which highlights its widespread global importance, the bank added. Political tensions and changes of government in some of the world’s major economies in recent times mean that tax changes and regulations are likely to continue being important for wealthy families in the near future.

“Advising clients today requires a nuanced understanding of global tax trends. Navigating this complexity demands foresight, agility, and a deep commitment to protecting client wealth,” Niederbacher said.

Individual and family growth opportunities ranks as the second family-related topic in most regions, gaining one place since last year, when “personal development options” ranked third in the topic rankings. This shows an increasing interest in fostering personal and professional development within families as well as exploring new opportunities for growth and expansion. Wealth education programmes for the rising generation are also a significant priority for wealthy families in order to diminish the risk that the wealth dissipates after one generation.

Family governance is also prioritised differently across regions. Despite a reported high level of professionalisation in practices and governance structures among most wealthy clients, they still rely on informal frameworks characterised by occasional discussions. This gap between the perceived level of professionalisation and the actual implementation of formal governance and risk frameworks underscores the need for more robust and formal governance mechanisms.

Finally, politics has become a top-three societal topic for the first time this year and is a major concern in Asia, the Middle East, and Latin America. This reflects widespread concerns among wealthy global families about the impact of trends such as nationalism, political polarisation, and diverging economic tectonics. “When families face outside instability or risk, they can seek guidance from professional advisors to increase the resilience of their wealth management strategies,” Julius Baer said in the report.

The world has become a more difficult and uncertain environment in which to preserve wealth, Julius Baer said. “In a world where the future is uncertain and change is fast-paced, families need to look beyond short-term performance so that they and their wealth not only withstand unpredictable times but also emerge stronger. This makes it all the more essential for them to work with professional advisors to establish a solid financial plan to protect their wealth against the negative forces of market volatility and geopolitical turmoil, and to ensure long-term growth for their wealth and that it remains abundant for future generations."

The survey shows that priorities differ across regions.

Asia
In Asia, political stability remains a top priority, while inflation protection has emerged as a key concern, the survey reveals. Asia stands out as one of the two regions that emphasise consolidated reporting of all assets. Thirty-seven per cent of wealth transfer discussions are also facilitated through informal family meetings. The reason for avoiding discussions is the fear of family conflicts for 46 per cent of Asian families.

The bank highlighted how Singapore’s location, economic stability, and well-regulated tax system make it a preferred hub for wealthy families looking for a base in Asia. The country offers a well-regulated financial sector and legal certainty which supports complex wealth management needs. Family office structures in Singapore are increasingly popular, with hundreds being established in the past few years.

Julius Baer said it thinks Hong Kong is an attractive destination for ultra-high net worth (UHNW) individuals seeking to establish family offices, as it offers a a robust family office infrastructure and serves as a sophisticated financial hub with excellent access to diverse investment opportunities.

Europe
In Europe, health remains a significant concern, the survey shows. Real estate investing is the top investment priority, unlike other regions. Some 33 per cent of wealth transfer discussions in the region involve professional advisors. Their main objective is to mitigate family conflicts, a concern for nearly 50 per cent of them.

Middle East
Intergenerational wealth transfer is more important in the Middle East than in other regions, with political stability also ranking high. Geopolitical diversification remains a significant concern, similar to last year's findings, the survey reveals. Some 40 per cent of wealth transfer discussions also occur through informal family meetings while concerns about family conflicts hinder these discussions for 44 per cent of families in the region.

Latin America
Personal safety is a unique concern in Latin America, not mentioned elsewhere, the bank continued. It is also one of two regions that highlighted the importance of consolidated reporting all assets. Forty-four per cent of wealth transfer discussions are also facilitated with the support of professional advisors. The primary concern stopping these discussions is the fear of family conflicts, affecting 44 per cent of families, the bank said.