Major Global Survey By STEP Reveals Attitudes To Wealth

STEP, the professional body for trust and estate practitioners, has today launched a major report Attitudes to Wealth – the first STEP survey of its kind capturing the insights of global clients’ attitudes to wealth and tax from more than 900 private client advisors across 86 countries.

This report comes at a critical time as multiple countries contend with rapid economic, political, and tax policy transformations. It offers a clear snapshot of the evolving attitudes toward wealth, taxation and social responsibility.

Why This Report Matters Now

Debates over wealth taxes gained unprecedented momentum at the World Economic Forum in Davos last year following calls from 250 billionaires and millionaires under the alliance of the Patriotic Millionaires to introduce wealth taxes to help pay for better public services around the world. This was followed by bold proposals at the G20 to tax the wealth of billionaires by at least 2 per cent annually.

STEP’s report provides clarity on what matters most to today’s ultra-high-net-worth clients. It reveals that, beyond the heated public discourse, securing financial stability for future generations remains the key driver for clients, but new generational perspectives are starting to influence priorities. In an era marked by technological disruptions and geopolitical risks, this insight is highly pertinent. Attitudes to Wealth demonstrates the importance of avoiding assumptions and the need to fully explore each client’s values and objectives to develop a truly personalised approach.

Key Findings:

Future-focused wealth planning: Financial security for future generations tops the list of priorities. Advisors report that today’s clients are increasingly informed and intentional about setting up enduring legacies that safeguard their families’ futures.
Increasing awareness of social responsibility: Social responsibility is becoming a key consideration, especially among younger clients, but it has yet to translate into meaningful action.
Balanced tax strategies: While taxation remains a key concern, mitigating tax exposure is not the most influential factor for clients and there is a shift towards an approach that balances efficiency and compliance with long-term wealth planning. Generational differences may drive new approaches to tax planning and a change in language around tax.
A need for enhanced education: There is a pressing need for greater public and professional education on trusts and related structures. Clear, accessible knowledge is crucial for clients, policymakers and the broader public to dismantle misconceptions.
Breaking family taboos: The persistent reluctance to discuss wealth openly within families remains a significant hurdle to proactive planning. Overcoming these barriers is essential for early and effective wealth management.
Holistic, values-driven advisory: A significant number of advisors are now engaging clients in comprehensive discussions about responsible wealth stewardship, integrating philanthropic interests and personal values into tailored planning strategies.

Catherine Grum TEP, a spokesperson for STEP, said: "Safeguarding legacy for current and future generations overwhelmingly remains a priority for clients. What is also apparent is that attitudes are not uniform with some clients taking steps to limit their wealth accumulation. The same is true in relation to their views of taxation."

"In the main clients have a more negative than positive attitude to tax which may not be surprising but more than one in 10 reported a more positive attitude towards taxation. A significant number of practitioners had clients who actively declined tax reliefs. It’s therefore increasingly important to take the time to ascertain where your clients stand."

"There's a clear rise in social responsibility, particularly among younger clients. It's encouraging to see advisors routinely broach philanthropic giving. There remains significant potential to embed these discussions at the core of wealth planning, aligning financial decisions with personal values and purpose."

"Over the next decade, we are likely to see a significant shift in client attitudes, amid rapid technological advances, geopolitical risks and evolving tax policies. The challenge for practitioners is to adapt and position themselves to support clients across the spectrum. With increasing reliance on AI and automation, maintaining strong client relationships while promoting responsible wealth stewardship will become more critical."

Strategic Implications For Practitioners

The report outlines actionable steps for wealth advisors:

Empower through education: Enhance client financial literacy and guide them through complex family dynamics.
Adapt to new priorities: Tailor strategies to meet the evolving expectations of younger, more socially conscious clients.
Stay ahead of change: Proactively monitor legislative shifts and advise on cross-border tax issues, ensuring compliance while achieving client end goals for their wealth and family security.
Champion sustainable investments: Assist clients in navigating sustainable investment opportunities, effectively balancing impact goals with financial returns.
Avoid misleading information: Ensure a sound understanding of climate change and social justice issues to avoid pitfalls like greenwashing, while adapting to increasing demand for transparency and accountability.
Demonstrate global expertise: Provide expertise in cross-border tax, immigration policies and international laws to help clients navigate increasingly complex global scenarios.
Deliver personalised, trusted advice: Emphasise the irreplaceable value of personalised, human-centric advisory services in an era increasingly driven by AI and automation.