Kartik Ramakrishnan

The 30th edition of the Capgemini Research Institute’s World Wealth Report 2026, found an 8.7% increase in global high-net-worth individual1 (HNWI) wealth in 2025, reaching a record USD 98.3 trillion — the largest single-year increase since 2018. A robust equity market performance and easing inflation drove HNWI wealth creation in 2025, growing the global millionaire population by nearly 2 million to 25.3 million individuals.

Across wealth bands, ultra-high-net-worth individuals (UHNWI) captured the largest share of the gains, buoyed by exposure to a greater range of public and select high-performing private asset classes. In 2025, the UHNWI global population stood at roughly 250,000 — a 9.4% increase year-over-year — retaining its status as the fastest-growing wealth segment for the second consecutive year. Global UHNWI wealth grew 9.7% year-over-year, outpacing the broader HNWI segment. Wealth remains heavily concentrated — the top 1% of HNWIs account for 34.8% of HNWI wealth.

Global stock market performance drives strong growth in HNWI wealth

Equity markets, fuelled by AI-related rallies, were the primary engine of HNWI wealth growth across five of six major regions in 2025:

• Asia-Pacific posted the highest regional growth in wealth of 10.5% and population growth of 9.4%, as semiconductor demand boosted Asian stock markets. Japan and China were among the strongest performers, adding 436,000 and 154,000 millionaires, respectively. India and Australia also saw growth, with HNWI populations increasing by 11,300 and 18,100, respectively.
• North America’s HNWI population increased 9.1%, led by the United States, which added 736,000 new millionaires — more than any other country worldwide — as its HNWI population grew by 9.2% to 8.7 million. Canada’s HNWI population recorded a jump of 6.7% with 30,000 new millionaires.
• Europe’s HNWI population grew 6.5% in 2025 after a decline in 2024, as the region benefited from stabilizing equity markets and easing inflation. Luxembourg emerged as one of the highest-growth markets with a 13.5% HNWI population increase. Germany registered an 11.1% growth in population, while France and the United Kingdom saw gains of 2.7% and 2.6%, respectively.
• Africa and Latin America both experienced HNWI population growth, at 4.1% and 0.3% respectively. In Africa, momentum was driven by higher precious metal prices, with Morocco registering the fastest-growth at 16.8%. In Latin America, trade uncertainty continued to constrain expansion despite a modest investment recovery. Mexico outperformed, with HNWI wealth rising 5.4%, and HNWI population rising 1.8%.
• The Middle East’s HNWI population contracted 1.4%, as lower oil prices and regional conflict, alongside labor market strain, weakened activity across several Gulf state economies.

Tech-driven growth impacts HNWI portfolio allocations

Equity allocations increased to 25% of HNWI portfolios as of January 2026, marking a three-percentage-point increase from last year. The growth was primarily fuelled by strong corporate earnings and significant gains in the technology sector. Fixed income holdings also expanded to 20%, up two percentage points, as bond markets delivered their strongest returns since 2020. Meanwhile, alternative investments2 declined to 12% reflecting the relative outperformance of public equities. Despite this shift, investor appetite for alternatives remains strong, with two in three HNWIs (68%) indicating an intention to increase their exposure to private equity.

“In our 30 years of tracking global wealth, 2025 represents an exceptional moment for the size of the world’s population of high-net worth individuals and the assets they control. HNWIs now have access to more asset classes across markets, along with greater options in terms of advisors and expertise. For the industry, this is a clear inflection point: between 2022 and 2025, an estimated USD 1.5 trillion in new assets flowed to competitors of traditional firms,” said Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member. “Clients, including younger HNWIs benefiting from wealth transfers, are seeking more: greater product access, deeper personalisation, and advice that truly reflects their lifestyle. Firms that can deliver this at scale, powered by AI-enabled insights and capabilities, will define the next era of wealth management.”

Augmented intelligence can deliver a personalised experience to clients at scale

While the HNWI population has expanded, competition for their wealth-management business has intensified. Exclusive client relationships have halved in the past six years: in 2019, 39% of HNWIs worked with a single firm; in 2025, that figure shrunk to just 19%. A significant driver of HNWIs expanding their wealth management network is product access — 88% of HNWIs say they work with multiple firms specifically to gain better access to alternative investments. WealthTechs, single-family offices, and robo-advisory platforms are increasingly capturing market share from incumbents, attracting clients who feel underserved on product breadth, advice quality, or both.

According to the report, only 17% of HNWIs describe their advisory experience as seamless and personalized, with 42% having to restate their goals and preferences multiple times to the same firm. Addressing these challenges will require wealth management firms to embed augmented intelligence — where technology sharpens, not replaces, the human advice clients receive — to bridge a growing gap between the experiences HNWIs expect and what traditional operating models can deliver.

The challenges run deeper than technology. Nearly all firms (97%) still segment clients primarily by assets under management, failing to capture the nuances of behavioural signals that define how HNWIs actually engage. The traditional operating model is again the core problem here: over half (60%) of wealth management executives acknowledge their firms lack a unified client view, resulting in fragmented processes and duplicated effort.

While expanding products and services boost loyalty, realizing measurable value requires proper coordination and management across the customer journey. With 41% of advisors’ time consumed by operational tasks, three quarters (76%) want AI-enabled systems to automate routine work and 61% want access to an integrated ecosystem of specialists to respond effectively across financial and non-financial needs. When firms get customer experience right, 53% of HNWIs recommend their firm to others, and 47% consolidate their assets, directly influencing wallet share.

Report Methodology

The Capgemini World Wealth Report 2026 draws data from three primary sources: the 2026 Global HNWI Survey, the 2026 Global Wealth Management Executive Survey, and the 2026 Global Relationship Manager Survey. These research sources polled 6,510 high-net-worth individuals across 27 markets, 144 senior wealth management executives across 24 markets, and 1,317 relationship managers across 24 markets. Respondents were asked about investment preferences and priorities, client experience expectations, advisory relationships, and the adoption of AI and digital tools in wealth management. Participants represent major markets across North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.

Read the report.

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Notes:
[1] HNWIs are high-net-worth individuals with investable assets of USD1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables. HNWIs are segmented into three categories based on wealth bands: Ultra-HNWIs (USD30 million or more), Mid-Tier Millionaires (USD5-30M) and Millionaires Next Door (USD1-5M).

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Shaun Bransdon

What I Wish I Knew About Retirement reveals opportunity for super funds to meet demand for income certainty and help more Australians retire with confidence

The second edition of TAL’s What I Wish I Knew About Retirement found a third of pre-retirees have taken no action to prepare for retirement and one in five don’t know what they’ll do with their super. This is despite two thirds reporting they are engaged or highly engaged with their finances.

The research, comparing the attitudes, experiences and behaviours of 2,000 pre-retirees and retirees aged 55 and older, shows an increased focus on financial certainty among pre-retirees compared with when the research was first conducted in 2024. When asked to nominate the most important features of a retirement product, two thirds list ‘an income that lasts a lifetime’ and ‘income keeping pace with inflation’ among features they value most.

Shaun Bransdon, General Manager, Retirement and Wealth at TAL said the findings show a disconnect between people’s financial engagement and taking action on retirement planning, with more seeking financial certainty.

“People care deeply about their financial futures and they’re paying attention – but we don’t see that in the actions they’re taking to plan for this critical life stage. Many feel they don’t have all the information they need.”

“Super funds are stepping into this opportunity, building on the trust developed with members over their working lives: 64% of pre-retirees say they trust their fund to advise on retirement needs. Options like guided settings, information on how different retirement income options work together with the Age Pension, and tools that help them make decisions that suit their circumstances, could help more Australians approach retirement with confidence.”

Preparing for retirement, and the unexpected

This year’s research shows that cost of living pressures are impacting retirement planning, with just 29% of pre-retirees saying they have money left over for regular saving or investing.  Almost half expect to have less spending power in retirement. The proportion of pre-retirees planning to work past age 70 has also jumped from 27% in 2024 to 36%.

While 33% of pre-retirees expect their retirement to last longer than 20 years, almost half expect their super to run out before then. Nearly half of retirees surveyed (48%) had taken no meaningful action to prepare for retirement, up from 39% in 2024. Among retirees who did plan for retirement, only a quarter started preparing before their 50s, with over one-third not taking action until their 60s or later.

This is significant because retirement often arrives earlier than expected – 61% of current retirees left the workforce before 65. Only 15% of pre-retirees expect to retire before 65.

That gap between expectation and reality can have lasting consequences, said Mr Bransdon.

“If you’re planning to work until 67 but have to leave at 62, you’ve lost five years of contributions at peak earning capacity. For many, that’s significant.”

Product choice and certainty shape retirement satisfaction

The research reveals significant differences in satisfaction based on what a person did with their super on retirement.

Around 90% of retirees who chose pension accounts or lifetime income products were satisfied with their decision. This compared with 81% who left their super in accumulation and 66% who withdrew lump sums.

Yet just 38% of pre-retirees are familiar with how these products work and 87% would want to find out more if their fund offered a lifetime income product. Among current retirees, 66% say they would have been interested if such products had been clearly offered when they retired.

Among retirees now in their 80s, one in five wish they’d spent more in their early retirement years. If retirees started running out of money, 40% say they would reduce spending and 34% say they would rely on the Age Pension, which for many household types sits below ASFA’s modest retirement standard.

“Retirement income strategies work best when flexibility is combined with certainty. And our research shows this is increasingly important to people. Account-based pensions provide growth potential and capital access for active years, while lifetime income streams support spending confidence and can reduce Age Pension reliance.”

“Without certainty about future income, even retirees with adequate savings may default to conservative spending. Product design can help – giving people confidence to enjoy their retirement while knowing their essential needs are covered,” Mr Bransdon said.

Read the full report, What I Wish I Knew About Retirement: Second Edition.

About the research

The second round of TAL’s What I Wish I Knew About Retirement research was an online quantitative study of 2,000 Australians aged 55 or over, comprising 873 pre-retirees and 1,127 retirees, who provided self-reported answers to survey questions. The first round was conducted in 2024; the second completed in 2026 by TAL’s research partner Edentify.

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Judith Fiander

Australians considering charitable giving before the end of the financial year should not be put off by uncertainty surrounding the proposed tax changes in the Federal Budget, Judith Fiander, Australian Philanthropic Services (APS) CEO, says.

Fiander says the ongoing consultation and political process around announced budget measures actually reinforces the value of making a tax-deductible charitable contribution before June 30.

“Although it is not clear, and will not be clear, until the political process around the various measures and what they mean for personal tax circumstances is complete, the advantage of tax deductible giving via a giving structure is you can make that gift now, and have that tax deduction at your disposal for as long as the next five years.”

Fiander says that by contributing to a structured giving vehicle such as a private ancillary fund (PAF) or a public ancillary fund (PuAF) before the end of the financial year, donors can secure a tax deduction now while retaining flexibility to apply that deduction over a five-year period.

“When the tax arrangements become clearer, donors will be able to deploy that deduction in the most tax-efficient way,” Fiander says.

Charities across Australia continue to face growing demand driven by cost-of-living pressures, inflation and broader economic uncertainty. Structured giving provides charities with a more reliable source of funding, helping organisations plan programs, deliver essential services and invest in longer-term projects.

“Charities need certainty just as much as donors do,” Fiander says.

“Structured philanthropy can support multi-year giving commitments and create sustainable revenue streams that help organisations make a greater impact.

APS is also encouraging greater awareness of the tax advantages of giving among high-net-worth Australians, with Australian Taxation Office data showing that around half of Australians earning more than $1 million annually claim no charitable donation deductions.

“That shows some people with the capacity to give are not, and that’s a missed opportunity both for the community and for donors themselves.”

Fiander says now is the time for people who have something to give, whatever that might look like – whether it’s time, money, labour or expertise – to step forward.

“With June 30 rapidly approaching, there is still time to make a charitable donation and gain a tax deduction.

“Every day is a good day for giving. But the days between now and June 30 are exceptional days for giving.”

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Kelly Power

New research from CFS reveals Australians approaching retirement are carrying a significant mental load, with many uncertain about their financial readiness and whether they’ll achieve a comfortable retirement.

Now in its third year, the CFS Rethinking Retirement report tracks how Australians feel as retirement approaches. The findings show that for many, retirement remains a financial challenge rather than a milestone to look forward to.

Just over half of Australians (51%) now say they feel prepared for retirement – an improvement on previous surveys, but the research shows there is still work to do for a majority of Australians to feel confident.

More than half (54%) worry they won’t have enough money to live comfortably, while 50% are concerned about unexpected health or aged care costs and 37% fear outliving their super savings.

The pressure is especially acute in the decade before retirement, with 61% of Australians aged 50–59 worrying about whether they have enough in savings to live comfortably.

The gap between when Australians hope to retire and when they expect to is equally telling. On average, Australians aspire to retire at 62, but believe they will need to keep working until 66. This four-year gap points to a mismatch between ambition and financial confidence.

There has also been a sharp shift in the amount Australians believe they need for a comfortable retirement. The research shows that the average amount Australians now believe is needed for a ‘comfortable’ retirement has moved above $1 million – an increase of $183,000 from the last survey.

Kelly Power, Chief Executive Officer of CFS Superannuation, said, “What this research makes clear is that retirement today is no longer just a financial transition. For many Australians, it brings a range of questions and considerations – from whether savings will be enough, to how to navigate an increasingly complex system. These are challenges many people are working through, and they need the right support to do so with clarity and confidence.

“Retirement is not a universal or linear experience. It is deeply personal, and so are the questions people bring to it. That is why we believe Australians should have access to the right guidance and support to help them approach this stage of life feeling informed, prepared, and in control,” added Ms Power.

Retirement pressure weighs more heavily on women

Women are significantly more likely to experience retirement-related stress, with nearly two in three (62%) worrying they won’t have enough money to live comfortably in retirement, compared with 48% of men.

Women are also more likely to be concerned about unexpected health and aged care costs (53% versus 46%) and about the prospect of outliving their superannuation savings (41% versus 34%).

The gender gap has persisted despite gradual improvement over three years of CFS surveys. The proportion of women who feel prepared for retirement has risen from 29% to 43%, while men’s preparedness increased from 44% to 59%. The distance between them, however, has remained largely unchanged – reflecting a structural confidence gap that persists across individual circumstances.

When it comes to the type of retirement Australians believe they will achieve, only 35% of women believe they will have a comfortable retirement, compared to nearly half of Australian men.

Financial advice plays a critical role in retirement outcomes

Financial advice is again a strong differentiator when it comes to retirement preparedness. More than three quarters of Australians who receive advice (77%) say they feel prepared for retirement, compared with less than half (45%) of those without an adviser.

Recent CFS member data reinforces this – those with a financial adviser are more likely to hold an investment risk profile suited to their life stage, rather than defaulting to more conservative approaches that can erode long-term retirement outcomes.

“The Rethinking Retirement report consistently shows that access to advice makes a tangible difference. Australians who receive it feel meaningfully more confident about retirement. Planning for retirement is complex, but the path forward becomes much clearer with the right support in place,” added Ms Power.

“That’s why improving access to financial advice is critical. We strongly believe that reducing barriers to advice, like cost, will help more Australians get the support they need to plan and retire with confidence.”

Read the report. 

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Investment-linked lifetime annuities challenge the idea that retirees must choose between enjoying their retirement and leaving a legacy.

Australia’s great wealth transfer is well underway. An estimated $5.4 trillion is expected to pass from those aged 60 and over to younger generations within the next two decades.^[1]

In 2024, around $150 billion was transferred and this is forecast to rise to $500 billion per annum by 2044,^[2] with more than 80% of inheritances going to individuals aged 50 and over.^[3]

With such a significant intergenerational shift in wealth, the role of financial advice has never been more critical. It’s no longer just about how to accumulate, it’s about ensuring the right assets go to the right people, at the right time, without unnecessary tax, legal disputes or financial mismanagement.

Importantly, wealth transfer is not a single event. It is the outcome of a well-structured financial strategy. The real question is not “How do you prepare for a wealth transfer?”, but rather “How do you build a financial plan that delivers the right outcomes?”

Modern families, modern challenges

Family structures are becoming increasingly complex, and estate planning must evolve accordingly.

Divorce rates are rising, with nearly 200,000 Australians filing for divorce between 2020 and 2022 – the highest level in over a decade.^[4]

These dynamics are reshaping how advisers need to think about wealth transfers.

In fact, the complexities of blended families have been linked to an 80% increase in family disputes over wills and estates over the past decade.^[5] Adding to this, a 2022 ruling by the Victorian Supreme Court reinforced that parents may have a “moral duty” to consider children from previous relationships, even if those children can later contest the estate.^[6]

Supporting loved ones with additional needs

The challenge becomes even more pronounced when clients have children or other loved ones with additional needs.

The traditional cycle of ageing where adult children support their parents, does not apply in these scenarios. Instead, your clients may be responsible for ongoing care of others well into their own retirements, while also wanting to plan for what happens when they are no longer here.

Guiding clients through this process is complex and deeply emotional. You are not only structuring financial outcomes – you are helping clients secure the long-term wellbeing and dignity of someone they care about.

Looking ahead, the scale of this issue is growing. By 2099, an estimated four million Australians will have a severe or profound disability. This is more than triple the number in 2009.^[7]

While improvements in care and accessibility are positive, they also introduce additional planning complexities. At the same time, many traditional financial solutions designed for non-dependant adult children particularly those with nevertheless, special needs or financial vulnerabilities, are becoming less effective.

In Australia^[8]:

• Nearly one in five people live with a disability
• One in three of those individuals has a severe or profound limitation

For many parents, one of the greatest concerns is simple – will my loved one be financially secure when I’m gone?

Why traditional structures may fall short

As family dynamics and client needs evolve, so too must the tools used to support them. Challenges financial advisers are facing include:

• Traditional estate planning approaches increasingly being tested; both legally and emotionally
• Increased complexity when planning for modern day family dynamics, complex family structures and blended family scenarios
• Providing some certainty to clients needing to support children or loved ones with additional needs

Wills and trusts remain important, but they can fall short in delivering certainty. They are frequently contested, misinterpreted, or reliant on third-party actions.

For clients, particularly those with vulnerable beneficiaries and complex family structures, the overall depleted certainty can leave them harbouring ongoing anxieties.

Expanding the estate planning toolkit

This is where alternative structures come into focus.

Investment bonds, for example, are increasingly being used as estate planning tools due to their flexibility and tax advantages.

They can be appropriately structured as non-estate assets that bypass probate, likely to reduce the risk of disputes. They also provide greater control over how and when wealth is transferred, without the administrative complexity of a trust.

But there is another, less commonly considered approach emerging in advice strategies.

A different lens: Providing a loved one a paycheque for life

Investment-linked lifetime annuities are typically used to provide retirees with a regular income stream for life, complementing superannuation and the Age Pension.

However, advisers are increasingly exploring their use in a different context – to provide a structured, ongoing income stream to a loved one after the client is gone.

Rather than transferring a lump sum, which may be easier to mismanage, contest or deplete, this different approach reframes the wealth transfer as an income outcome.

It shifts the focus from – “How much is left?” to “How is it delivered, and how long will it last?”

This has led to a growing uptake of lifetime annuities as tools for a controlled, predictable “paycheque for life” – a lasting legacy for life.

Planning for their financial future, in a different way

Investment-linked lifetime annuities offer a level of innovation that’s not often found in traditional financial solutions; they are flexible and can be creatively applied in ways that cater to any family situation.

When setting up a lifetime annuity, the investor can choose their payment frequency and have a choice to invest in professionally managed options that they can switch between over the life of the annuity. Importantly, they can also elect a reversionary beneficiary that will be paid a lifelong income.

For some, they won’t require this level of tailored planning; straightforward solutions can work well. However, for those looking to ensure a steady stream of income for a loved one – for example, a child with a disability, or a loved one with a complex mental health history – this could be the ideal fit. Ultimately, the annuity provides for the recipient and leaves the investor free to enjoy their final chapters knowing that their loved one will be looked after when they’re gone.

Bringing this to life

Financial advisers can listen and understand their clients’ priorities, then set up lifetime annuities that can deliver to their unique needs. For instance, an adviser can set up a recipient with a lump sum or a lifelong income stream. For an income stream, they can specify to whom it goes, whether all or a portion of the income continues and how it is invested now, with the flexibility to change this over the course of their client’s lifetime as well as changing it to match the reversionary beneficiary’s risk profile upon transfer.

Case Study 1: Meet Wendy

Wendy is 72 years old and currently has $50,000 in savings, a $500,000 account-based pension and $30,000 in car and contents.

Despite these assets, Wendy is hesitant about her spending as she worries about her daughter, Jennifer.

Jennifer is 52 years old and has a history of a complex mental health disorder. This impacts her ability to spend her income within her means. Based on Jennifer’s history, Wendy is worried that there is a high likelihood Jennifer could bankrupt herself unless she has a regular, long-term stream of income after Wendy passes away.

By working with a financial adviser, Wendy sets up an investment-linked lifetime annuity for herself using $200,000 that she withdraws from her account-based pension. Wendy nominates Jennifer as the reversionary beneficiary on the annuity, which will provide an income guaranteed for Jennifer’s life after Wendy passes away.  Wendy doesn’t need to worry about anyone else trying to access Jennifer’s future income source. This is because an investment-linked lifetime annuity offers the protections of a life insurance policy, including from bankruptcy and estate claims.

This way, Wendy has greater confidence to enjoy her retirement to the fullest. She knows that she will have income for herself, but also a regular income stream for Jennifer that will serve as a safety net after Wendy passes away.

Case study 2: Meet Sophia

Sophia is 73 years old and single. She has a son, Paul, who is 50 years old. Sophia is a self-funded retiree and a homeowner, and she currently has $360,000 in an account-based pension, $40,000 personal assets and $350,000 cash at bank.

Sophia is concerned about her retirement spending and would like to gain access to the Age Pension.  She also worries about her son Paul, who is bad with money.

Sophia would like to secure Paul’s future, including by diminishing the potential for Paul to misuse a future lump sum inheritance.

By working with her financial adviser, Sophia sets up an investment-linked lifetime annuity of $300,000 and a funeral bond of $15,750 from the money she had in the bank. She nominates Paul as the reversionary beneficiary providing regular income for them both at different times.

Comparing Sophia’s first year income

By setting up an investment-linked lifetime annuity, Sophia receives an immediate uplift in annual income of $16,023, including an Age Pension uplift of $7,812.

Comparing Sophia’s annual income and cumulative income with and without an investment-linked lifetime annuity until age 100

By bringing forward Age Pension eligibility by four years, she receives an additional $45,369 in cumulative Age Pension by age 77. Sophia also receives an additional $630,084 in cumulative income by Age 100.

What if Sophia passes away at age 93…

Sophia receives a total of $443,807 in cumulative income until she passes away at age 93. Paul, now age 70 himself, will receive a total of $464,430 until his life expectancy and continue to receive an income for life after that. Importantly, there is no tax on earnings and concessional taxation treatment on the income payments should their income exceed SAPTO.

Case study 3: Meet George

George is 88, a homeowner in Port Macquarie, living alone following the passing of his wife, three years ago. His two adult children live in Sydney and visit infrequently, typically once a year at Christmas.

As George has aged, maintaining his home and managing day-to-day tasks has become increasingly difficult, and he has begun to feel isolated. His neighbour and a father of three, Sam, has stepped in, regularly helping with groceries, home maintenance, and providing much-needed companionship.

George is clear in his intention: he would like to recognise Sam’s support by providing him with a lifelong “paycheque for life,” while ensuring this arrangement cannot be challenged by his children. At the same time, George intends to leave his home, remaining superannuation balance, and other non-super assets to his two children, allowing him to support Sam without compromising his broader estate planning objectives.

By working with a financial adviser, George restructures part of his retirement savings; withdrawing a portion of him account-based pension and setting up an investment-linked lifetime annuity. He nominates Sam as the reversionary beneficiary.

This structure allows George to create an income stream guaranteed to be paid to Sam for life after George passes away, rather than leaving a lump sum that could be contested. Importantly, as an investment-linked lifetime annuity is issued under a life insurance structure, it can be established as a non-estate asset – helping to reduce the risk of estate disputes and providing additional protection, including in the event of bankruptcy.

For George, this approach delivers certainty and control, ensuring his wishes are carried out, and that Sam receives a legacy for life.

Thinking outside the box

Investment-linked lifetime annuities challenge the idea that retirees must choose between enjoying their retirement and leaving a legacy.

For financial advisers, this presents an opportunity to rethink beneficiary planning. As client needs evolve, whether its supporting dependent children, protecting vulnerable loved ones or planning for legacies to last a lifetime, strategies must evolve to deliver more flexible, intentional and client-aligned outcomes.

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Notes:
[1] JBWere Australia, Family Advisory and Philanthropic Services, The Bequest Report – Reshaping Australia by passing on more than assets July 2024, accessed 20 March 2025
[2] Ibid
[3] Grattan Institute, The story of inheritances in Australia – and why it needs to change https://grattan.edu.au/news/the-story-of-inheritances-in-australia-and-why-it-needs-to-change/, 20 August 2019 accessed 1 August 2025
[4] Sydney Morning Herald, ‘Divorce applications up as marriages hit the rocks’, https://www.smh.com.au/national/divorce-20220628-p5axco.html 3 July 2022 accessed on 15 April 2025.
[5] Australian Financial Review, ‘Big increase in inheritance feuds among blended families’, https://www.afr.com/wealth/personal-finance/big-increase-in-inheritance-feuds-among-blended-families-20191212-p53jbs 27 December 2019 accessed on 15 April 2025.
[6] Australian Financial Review, ‘Court enforces rights of stepchildren in blended families’ https://www.afr.com/wealth/personal-finance/court-enforces-rights-of-stepchildren-in-blended-families-20220311-p5a3u5, 16 March 2022, accessed on 15 April 2025.
[7] ‘Disability expectations – Investing in a better life, a stronger Australia’ – Price Waterhouse Coopers, November 2011, accessed 17 June 2024 https://www.pwc.com.au/industry/government/assets/disability-in-australia.pdf
[8] Disability statistics, accessed 17 June 2024  https://www.aruma.com.au/about-us/about-disability/disability-statistics/

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Toby Ellis

Generation X – those born between 1965 and 1980 – is doing much of the heavy lifting in Australian society – raising families, caring for ageing parents and keeping the economy moving.

However, more than half say they feel invisible in national debate, and only 3 per cent say they are thriving.

New national research from Citro, released yesterday, reveals a generation caught in the middle: emotionally stretched, quietly coping and largely missing from public conversation, despite being in their peak working and caring years.

The survey of more than 1000 Gen X Australians found:

• 51% feel mostly or completely invisible in Australian media, politics and public discussion
• 90% describe themselves as exhausted, uncertain, stretched or coping
• Just 3% say they are thriving
• 66% say caring responsibilities leave them emotionally or mentally stretched

Citro managing director Toby Ellis said the findings pointed to a major blind spot in how Australia thinks about wellbeing and ageing.

“Generation X is holding a lot together in Australia right now – families, workplaces and communities – but they’re doing it quietly and often at personal cost,” Ellis said.

“This research shows a generation that is resilient and capable, but tired, under‑recognised and coping rather than thriving. The risk is that we only notice the strain when something breaks.”

Unlike younger generations, who dominate conversations about housing and cost‑of‑living pressures, or older Australians, who are the focus of retirement policy, Gen X often falls between the cracks, the research shows.

Many respondents reported juggling care for children, adult children and ageing parents at the same time, while navigating midlife health changes, work pressure and growing uncertainty about the future.

“We have built strong systems in Australia to talk about money and retirement,” Ellis said.

“But this research highlights the other side of the equation – social connection, identity and emotional wellbeing – and how fragile those supports can become in midlife if they’re ignored.”

AMP’s Chief Economist Dr. Shane Oliver said Generation X has been absorbing the economic shock of recent years while continuing to carry much of the load across households, workplaces and communities.

“One of the most important factors shaping Gen X outcomes is that real wages remain materially lower than they were five years ago, despite recent nominal wage growth. The surge in inflation following the pandemic significantly eroded purchasing power, and it will take many years for that lost ground to be fully recovered.

“For Generation X, this matters more than for most cohorts. These are peak expense years – when mortgages are largest, children are still financially dependent, and caring responsibilities extend simultaneously to ageing parents and family members. The result has been sustained financial compression, not temporary adjustment.

According to Ellis, Citro’s findings suggest how Australians feel in midlife will shape how confidently they enter later life – not just financially, but socially and emotionally.

The report calls for greater recognition of midlife as a distinct life stage, stronger support for carers, and more focus on community connection and belonging – alongside financial preparation – to support long‑term wellbeing.

“The foundations for later life aren’t built at retirement,” Ellis said.

“They’re built much earlier, through feeling seen, connected, valued and supported. If Gen X enters the next chapter already depleted, the consequences won’t just be personal – they’ll be societal.”

About the report
Citro commissioned a comprehensive study in March of over 1,000 Gen X Australians (born 1965–1980) across all states and territories. The survey was conducted by independent research group Dynata and captured the lived experience of a generation navigating mid-life under mounting financial, caring, workplace, and health pressures — largely without a public voice.

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Katrina Harper

When a child receives a life-changing compensation payout or trust, the decisions made in the months that follow can shape their financial security for life.

For many families, these moments come in the wake of trauma – a serious injury, medical negligence, or the loss of a parent – bringing not just emotional strain, but the responsibility of managing a significant sum of money intended to last a lifetime.

The role of a professional trustee is critical in ensuring these funds are not only protected but used in a way that supports a child’s long-term wellbeing, independence and quality of life.

A lifetime shaped by early decisions

Consider the case of a young child who received a substantial compensation payout following a medical incident that resulted in lifelong disability. With complex care needs and no clear way to predict future costs, the responsibility of managing those funds extended far beyond simple investment decisions.

Without the right structure in place, there is a real risk the funds could be mismanaged, depleted too quickly, or influenced by competing family interests.

“People often see a large sum of money and assume it will last forever,” said Katrina Harper, National Manager, Health & Personal Injury at Equity Trustees. “But when you factor in lifelong care, medical needs and inflation, that capital needs to be carefully managed to ensure it supports the beneficiary for decades.”

Trustees play a central role in determining how, when and why funds are released – decisions that directly impact the beneficiary’s quality of life.

Balancing protection with independence

While safeguarding capital is critical, a well-managed trust is about more than preservation. Trust structures can fund essential needs such as medical care, specialised equipment and daily living support, while also supporting education, housing and social participation.

Jonathan Guthrie-Jones, National Manager, Continuing Trusts at Equity Trustees said, “It’s about striking the right balance – ensuring the beneficiary is cared for, while also helping them build the skills and confidence to manage money over time.”

For minors, trustees often introduce a level of oversight that encourages better financial behaviours. Rather than receiving unrestricted access to funds, beneficiaries are guided to think about their spending decisions – a process that helps prepare them for eventual financial independence at vesting.

Navigating complex family dynamics

In many cases, trustees are also required to manage competing interests within families, particularly where significant sums of money are involved.

“Unfortunately, money can create tension, even in well-intentioned families,” Guthrie-Jones said. “An independent trustee provides a layer of protection, ensuring decisions are made in the best interests of the beneficiary.”

This includes implementing safeguards such as paying suppliers directly, verifying expenses, and working with medical professionals to ensure funds are used appropriately.

In one case, a testator (the person who made the will) left a sum of money to a grandchild, to be received at age 21. A separate trust was also established for the child’s mother, who had a history of poor financial management. To safeguard the grandchild’s inheritance from potential claims once the funds vested, Equity Trustees facilitated the purchase of a home in the grandchild’s name before they reached vesting age. This approach ensured the testator’s intentions were fulfilled, while protecting the inheritance from being accessed by the mother.

Funding life’s major milestones

One of the most important and complex aspects of trustee decision-making is determining how to fund major life milestones, like purchasing a house to live in.

For example, after losing their mother and with no father present, a young beneficiary was cared for by their grandparents, but they were unable to provide a stable living environment. Acting in the beneficiary’s best interests, Equity Trustees supported the purchase of a home before they took full control of their funds, ensuring the property was both appropriate for their needs and financially sustainable for the future.

“When considering large decisions like housing, we look at whether it’s in the beneficiary’s best interests both now and in the future,” Harper said. “We also assess affordability because every dollar spent today impacts the income available tomorrow.”

Planning for a successful transition

As beneficiaries approach adulthood, trustees play an important role in preparing them for the transition to financial independence.

This may include gradually involving them in financial discussions, encouraging responsible decision-making, and connecting them with professional financial advisers.

“A successful outcome is when a young person understands the value of what they’ve been given and uses it to support their future – whether that’s education, housing or long-term security,” Harper said.

A decision that lasts generations

With compensation and testamentary trusts often lasting many years the importance of early decisions cannot be overstated.

“The structure you put in place from day one sets the tone for everything that follows,” Guthrie-Jones said. “It’s about protecting the funds, but also about creating opportunities so that the beneficiary can live with dignity, independence and security.”

As families navigate some of life’s most challenging circumstances, the right trustee decision can make all the difference.

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Judith Fiander

With the end of the financial year fast approaching, strategic philanthropy can solve a familiar problem for wealthy clients: a last-minute tax bill, Judith Fiander, CEO at Australian Philanthropic Services says.

Private Ancillary Funds (PAFs) are a popular choice for people who have a large tax bill as a result of selling a business or property, with the added bonus of ensuring they can also leave a long-term charitable legacy. A donation to a PAF delivers an immediate tax deduction that can be used that year or spread across up to five years and the fund itself is tax exempt, so the money can grow over time.

But with just weeks until 30 June, Fiander says many potential donors worry it is too late to start.

“Setting up a PAF typically takes about five weeks. However, a lesser-known alternative called a Public Ancillary Fund (PuAF) can be established in as little as one day with no setup fees. That means there is still time to claim a deduction this financial year,” Fiander says.

“Many of our clients don’t think of themselves as “wealthy” and this can be a barrier to structured giving. But experiencing a windfall, such as selling a business or a property, opens the door to this highly tax-effective and enormously satisfying opportunity.

“A giving fund with a provider like Australian Philanthropic Services can be started with just $40,000.”

A recent survey conducted by Australian Philanthropic Services highlighted a shift towards long-term, values-led philanthropy, with the majority of respondents aiming to maintain their fund in perpetuity, ensuring their charitable impact continues for generations.

Fiander says the end of financial year (EOFY) presents an opportunity for individuals, couples and families considering philanthropy to identify causes close to their hearts, and put a plan in action that shapes a more purposeful legacy.

“People are increasingly looking for strategic advice on philanthropy, from setting up foundations to making sure donations are tax effective,” Fiander says.

Some people come to APS direct, and others come with the assistance of their financial adviser.

“By partnering with a specialist provider, advisers can expand what they offer clients without getting bogged down in red tape.

“While tax advantages grab attention at this time of year, the real power of structured giving is what it makes possible. Our clients are driven by having meaningful impact, family conversations about shared values, and the simple joy of giving.”

Latest Australian Taxation Office statistics from 2022–23, show PAFs made distributions of just under $800 million, with 114 new PAFs approved, adding to a total of 2,196 now operating in Australia.

The APS Foundation – Australia’s fastest growing and most generous PuAF amongst its peers – saw the creation of 123 new Giving Funds (or sub-funds) in FY2025. Since its establishment 14 years ago, APS clients have given away more than $1.4 billion to charities and now have over $2.9 billion in funds donated into ancillary funds for future charitable use.

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Ben Hillier

North has launched a new Retirement Philosophy, designed to help advice practices deepen their thinking on retirement advice and develop a clear, consistent approach tailored to their own clients.

Developed by the Retirement Confidence Hub, the Retirement Philosophy has six principles (SMILE+R) for managing client risks as they transition into retirement and reinforces the importance of addressing these challenges through a broader set of strategies, not investment selection alone.

It is a practical framework and discussion aid that supports advice practices to articulate how they think about retirement, the risks retirees face, and the trade‑offs clients must navigate as they approach and move through retirement.

AMP Retirement Confidence Hub Chair and Director of Retirement at AMP, Ben Hillier, said: “Retirement today is no longer a single decision or a short phase of life. Australians are retiring earlier, living longer, and facing more uncertainty than ever before.”

“Our Retirement Philosophy has been developed to help advice practices step back and articulate how they think about retirement advice – not just the products used, but the risks managed, the client needs prioritised and the outcomes they’re trying to deliver.”

“When clients understand how their retirement has been structured and why certain decisions have been made, it builds trust and confidence.”

“For advisers, having a documented retirement philosophy creates clarity across the advice team, supports consistent client experiences, and strengthens their value proposition in a highly competitive market.”

Delivering confidence and client-centred outcomes

According to AMP research, most older Australians find it challenging to navigate our retirement system with 3 in 4 Australians aged 50+ saying they find the system too complex^[1] and 2 in 5 holding back spending for fear of running out^[2]. In addition, over half (52%) of Australians aged 50+ are stressed or worried about having enough super for retirement.
A clearly articulated retirement philosophy can help advisers better serve this cohort of Australians heading into retirement by materially improving client confidence and the consistency of advice delivery.

Rather than prescribing a single approach, the Retirement Philosophy is intended to be adapted by practices to align with their own beliefs, values and client base, while helping advisers deliver more confident, client‑centred retirement outcomes.

The Philosophy also introduces a needs‑based framework for retirement, known as the Five Ls – Liquidity, Living, Lifestyle, Later and Legacy – to help advisers and clients have clearer conversations about what money is for at different stages of retirement, and the trade‑offs between spending now and planning for later life.

Evolving traditional approaches to retirement planning

According to Treasury’s Retirement Income Review, many Australians are not using the superannuation system as it is intended and could be drawing down more from their superannuation balances but fail to do so – with the majority passing away with the bulk of their wealth still intact.

The framework looks to solve this problem by encouraging advisers to move beyond planning to life expectancy alone, and instead consider planning to an ‘80 per cent confidence age’.

This recognises that many Australians will live well beyond average life expectancy and need greater certainty that essential living costs can be met for life.

Delivered through AMP’s Retirement Confidence Hub, the Retirement Philosophy forms part of a broader suite of thought leadership and structured resources designed to support advice practices as they help clients transition from accumulation to retirement and beyond.

AMP Group Executive, Platforms, Edwina Maloney said the framework responds to the growing complexity of retirement and the need for more structured advice conversations. It follows on from the launch of AMP’s Retirement Confidence Hub in September last year.

“At North, our retirement philosophy is built around one simple idea: confidence. Confidence that your essentials are covered for life. Confidence that you can ride out markets and inflation. And confidence to actually enjoy your retirement without a fear of running out or looking back with regret.

“That’s why our approach focuses on the real risks retirees face, not just financial ones, and designs strategies around how people actually live.

“Our aim with the Retirement Philosophy, alongside the Retirement Confidence Hub, is to give advisers practical frameworks and insights they can genuinely use.”

“This isn’t about telling practices what their philosophy should be, it’s about giving them the tools to develop one that reflects their clients, their business and their belief in what good retirement advice looks like.”

The Retirement Philosophy framework is available now to advice practices via the AMP Retirement Confidence Hub.

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Notes:
[1] Source: Australians financially illiterate when it comes to retirement – AMP
[2] Source: AMP’s Retirement Confidence Pulse

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Lousie Watson

The financial advice industry is ripe for disruption as almost two thirds (65%) of Australian investors say they don’t plan to retain their parents’ or spouse’s financial adviser when managing inherited assets, according to Natixis Investment Manager’s (Natixis IM) Great Wealth Transfer Report.

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