The pandemic has influenced 84 per cent of ultra-wealthy Indians, more than the global average, to reassess their attitudes to succession planning, according to a survey.
The survey was based on responses from more than 600 private bankers, wealth advisors and family offices representing a combined wealth of more than USD 3.3 trillion.
According to the Knight Frank Attitudes Survey 2021, India is among the top four countries where ultra-wealthy Indians have reassessed their attitudes to succession planning in light of COVID-19 pandemic.
As many as 90 per cent of ultra-high-net-worth individuals (UHNWIs) in Canada redefined succession planning during the pandemic, while in Turkey the figure stands at 85 per cent and South Africa (80 per cent).
Globally, around 60 per cent of UHNWIs have reassessed their succession planning during the pandemic.
According to the survey, 30 per cent of ultra-wealthy Indians placed ‘transferring of wealth to the next generation’ in the top three worries, while 16 per cent respondents see it as an exciting opportunity.
In the global context, 28 per cent of UHNWIs positioned this in the top three worries while 23 per cent of respondents saw it as opportunity in 2021.
“The hard-hit global pandemic has disproportionately affected the older generations for growing wealth, making them reassess their succession planning attitudes,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
The younger generation can lead their wealth to new heights as they come equipped with a different thinking process and tech-savvy background, Baijal said.
In the survey, 89 per cent of Indian UHNWIs said new investments opportunities opening up in the post-COVID world will largely excite them for wealth creation.
Around 61 per cent respondents expect that technology disruption will also play a vital role, while 23 per cent of ultra-wealthy Indians expect an improvement in domestic government policy will help them grow wealth.
“Despite being a challenging year for the Indian economy and some sectors, Indian UHNWIs are more optimistic about the country’s economic growth and expect their wealth to increase in the year 2021. With its various economic reforms and policy amends, India has attracted global investors, which resulted in a positive outlook for the economy,” Baijal noted.
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