UBS: World to See US$83 Trillion Wealth Transfer, Reshaping Wealth Management Landscape

(CNA, Taipei, 9th) UBS stated today that the world will experience a massive US$83 trillion wealth transfer over the next 20 to 30 years, reshaping the wealth management landscape. This also extends the core of wealth inheritance from asset transfer to the continuation of responsibility, decision-making power, and family mission. Establishing a clear governance structure early on will help reduce conflicts and ensure the long-term stable development of the family.

In May, UBS released its global next-generation report, which collected over 170 questionnaires worldwide from the perspective of next-generation successors and heirs. At a media sharing session held today, the core trends and practical challenges of family wealth inheritance in Taiwan were analyzed, sharing frontline observations and research.

The report points out that the Great Wealth Transfer is no longer a distant forecast. In the next 20 to 30 years, the world will face a massive US$83 trillion transfer of wealth and generations. Driven by factors such as an aging population, longer life expectancy, and decades of asset value growth, these changes will reshape the wealth landscape.

The report reveals that when facing family asset inheritance issues, 56% of respondents believe that discussions about family assets should be held early, as proactive and open dialogue helps communication between generations. 41% believe that wealth inheritance is no longer just about "asset transfer" but about the continuation of responsibility, decision-making power, and family mission. 38% hope to understand the family's wealth structure and governance before taking on more family responsibilities. Additionally, 33% mentioned that "communication failure" is the main cause of tension between generations in a family.

Dennis Su, Head of UBS Taiwan, observed that Taiwan is entering a wave of family wealth transfer and business succession, with most first-generation entrepreneurs gradually entering their 70s and 80s, the stage of retirement and handover. This has extended the core of wealth inheritance from asset transfer to the continuation of responsibility, decision-making power, and family mission. He said that establishing a clear governance structure and promoting cross-generational communication early on will help reduce conflicts and ensure the long-term stable development of family businesses.

Elina Lin, Head of Family Office Advisory and Wealth Planning Services at UBS, shared that as the second generation gradually enters the decision-making circle, the family may face practical challenges such as succession arrangements, insufficient equity concentration, or differing expectations among family members about the future direction.

Furthermore, regarding investment targets, the report shows that 79% of respondents still primarily invest in traditional assets such as stocks, bonds, funds, and real estate; 50% show interest in impact and sustainable investment issues. Dennis Su mentioned that there are indeed differences in views on asset allocation between different generations. For example, many in the younger generation have received an open, international education and have access to a wider range of information, leading them to seek out and invest in good investment targets. (Editor: Zhai Si-jia) 1150609