Australia’s wealthy hit record $4 trillion as Trump tariffs trigger caution beyond Covid levels

Michael Chisholm

LGT Wealth Management’s 2025 State of Wealth Report shows record high-net-worth growth, a $2.26 trillion wealth transfer already underway, rising allocations into private markets and sustainable investments, and a greater reliance on trusted financial advice.

Australia’s high-net-worth (HNW) population has risen to 760,000, controlling a record $4 trillion in assets, according to LGT Wealth Management’s (LGTWM) 2025 State of Wealth report launched yesterday. Now in its fifth year, the study points to a new era of investor psychology: more resilient, more disciplined, and increasingly adviser-led. That composure was tested in April, when Donald Trump’s tariff shock pushed concern to 7.9/10 – eclipsing the 7.2 peak recorded during Covid.

The report surveyed 1,191 Australians with more than $1 million in investable assets, including 168 ultra-high net worth investors (UHNW) with over $10 million. It seeks to provide a detailed view of how Australia’s wealthy are adapting their strategies in the face of global uncertainty and the largest intergenerational wealth transfer in Australian history.

The findings reveal how this shift is playing out in practice. Wealthy Australians are taking a more measured approach to risk, expanding into sustainable investments, diversifying into private markets and other alternatives, and relying more on advisers to navigate complexity and plan for future generations.

Australia’s rich are wealthier, but warier – turning to advice in uncertain times

Australia’s HNW population has reached 760,000, an 18% increase in the past year. At the top end, the ultra-wealthy cohort grew most rapidly, expanding by 19%, with average wealth per individual increasing to $18.9 million.

But rising wealth has also been met with heightened caution. In April 2025, average concern levels spiked to 7.9 out of 10 in April following new U.S. tariffs – higher than the Covid 7.2 peak. Despite this, investors remained disciplined: two-thirds of HNWs made no major adjustments – sending substantial portfolio changes to a decade low. Use of professional advisers also rose, with 26% of HNWs now advised, controlling $1.41 trillion or 35% of assets.

“What’s striking is how calm investors have been,” said Michael Chisholm, Chief Executive Officer of LGT Wealth Management in Australia. “Staying the course takes discipline and perspective, and Australia’s wealthy are showing both. They’re thinking more like global institutions – measured, diversified, and focused on long-term goals – while leaning on advice and making informed decisions with family and legacy in mind.”

Record wealth transfer is now underway, but advice gaps remain

Intergenerational planning is also at record levels, with an estimated $2.26 trillion already in motion. This marks a fundamental shift in how legacy is viewed – less about inheritance after death and more about empowerment and shared prosperity across generations.

61% of HNWs are now actively discussing inheritance and estate planning with advisers, and 70% of advised HNWs have already started, or plan to start, transferring wealth during their lifetimes. Yet even as advice engagement rises, significant gaps remain. More than half of wealthy Australians say they still lack adequate support – particularly in tax and estate planning, legal and administrative complexity, preserving family wealth and preparing heirs.

The opportunity for advisers is clear. The persistence of unmet needs across the broader HNW population underscores the critical role of professional advice in guiding succession and intergenerational planning as the nation’s great wealth transfer accelerates.

“With a historic transfer of wealth now reshaping Australia’s financial landscape, clients are seeking guidance that bring both clarity and purpose to their decisions,” Mr Chisholm said. “The role of quality advice has never been more vital. Wealth today is about more than numbers on a balance sheet, it’s about understanding family priorities and building a legacy that endures across generations.”

Private markets allocations rising; investors deepen diversification

Private markets are no longer niche, they’re becoming central to how wealthy Australians invest. Allocations have risen to 10% overall and around 17% among UHNWs, while the number of participants has climbed to 171,000 in 2025, up from 146,000 last year. The trend signals a decisive move beyond traditional asset classes as investors seek new avenues for diversification and returns.

With dispersion widening across private markets, the onus on advisers has never been greater. Their role extends beyond sourcing opportunities, ensuring clients have access to high-quality managers, understand the risks, and invest through a lens of discipline, due diligence and long-term resilience.

“Private markets are now a core part of portfolio construction,” said Mr Chisholm. “Reflecting not only appetite for diversification and stronger risk management, but also a shift towards a more institutional mindset.

“Within that, we’re seeing a real flight to quality – investors are prioritising resilient income opportunities and experienced managers who can manage risk through the cycle. Accessing these opportunities takes expertise and deep due diligence. Private credit can offer attractive returns, but success depends on knowing who you’re investing with and how they manage risk. That’s why we’ve built one of the largest local investment teams in the industry with the experience to look under the hood and genuinely understand the detail – because in this space, the details make all the difference.”

One in three HNWs now hold sustainable investments – values and legacy shaping portfolios

Sustainable investing has entered the mainstream, with 30% of HNWs now adopting sustainability strategies and, on average, 35% of their portfolios aligned to responsible investments.

Personal values and ethics remain the leading motivation, cited by 65% of HNWIs and around 60% of UHNWIs, while performance continues to rank among the top five considerations. Advisers are also playing a pivotal role in this shift – with clients who seek professional guidance significantly more likely to integrate responsible investments into their portfolios.

“At its heart, this is about values as much as returns,” Mr Chisholm noted. “Investors expect market-level returns at a minimum – that’s non-negotiable. What’s changing is that many now also want their money to reflect what matters to them. Environmental or social outcomes are an additional benefit, not an alternative to performance.”

Women are emerging as powerful drivers of this evolution. The report shows that 37% of female HNWIs choose investments based on ethical or ESG considerations, compared with 29% of men, and they allocate a higher share of their portfolios to responsible investments.

“Women stand to become a defining force behind the next wave of wealth creation,” Mr Chisholm said. “As they continue to inherit and control more wealth, they’re using that influence to back investments that perform well and make a difference – proving that performance and purpose can go hand in hand. Sustainable investing has become a core aspect in how Australia’s wealthy think about legacy and long-term value.”

Wealthier, wiser and more values-driven

The 2025 State of Wealth report shows that Australia’s wealthy are more affluent than ever, but also more disciplined, more values-driven, and more reliant on advice. This progression marks a shift towards greater resilience in the face of political and economic shocks, with investors building portfolios designed to navigate uncertainty and create enduring wealth for future generations.

“As the world becomes more complex, wealthy Australians are taking a steadier, more purposeful approach,” Mr Chisholm concluded. “They’re diversifying, planning ahead, and making sure their wealth carries meaning for the next generation. That shift is reshaping what it means to be wealthy in Australia today.”

The 2025 State of Wealth report is based on independent research conducted by Investment Trends, comprising Australia’s most comprehensive study of the investment and lifestyle habits of HNW and UHNW individuals.