Most inheritors are making significant financial decisions within months of receiving wealth, despite feeling unprepared to do so, according to new research from Capital Group.
The study, which examined behaviours linked to the so-called Great Wealth Transfer, revealed that 91% of inheritors made their first major financial decision within three months of receiving an inheritance. However, just 18% said they felt comfortable making those decisions in the first few weeks after inheriting.
Only 19% said they are fully happy with how they used their inheritance, while 60% wished they had invested more in securities or retirement accounts.
Capital Group said these findings highlight a confidence gap among inheritors and underline the importance of trusted financial advice at a point when individuals are required to make life-changing decisions.
The UK appears to be at the forefront of this trend, with 50% making a significant decision within weeks of receiving an inheritance, compared with 43% globally.
UK inheritors are also more likely to engage with professional advice, with 79% of respondents to the research saying it shaped how they used and invested their inheritance, compared with 70% globally.
Over half (58%) of UK inheritors said they acted fully on the advice they received, versus 48% globally.
The study also highlighted differing approaches among demographic groups, with women more likely than men to supplement professional advice with digital platforms, robo-advisers, AI tools and guidance from friends and family.
Younger inheritors also appeared more willing to reassess adviser relationships, with 54% of Gen Z respondents saying they found a new adviser whom they felt was a better fit after receiving an inheritance, compared with 38% of Gen X and 28% of baby boomers.
Guy Henriques, president of Europe and Asia-Pacific client group at Capital Group, said: “Receiving an inheritance often brings immediate financial, legal and administrative decisions, before many inheritors have had time to decide what they want that wealth to achieve.
“Trusted financial advice can make a real difference, helping inheritors simplify complexity, make confident decisions and build a long-term investment plan.”