Key Findings from the STEP 2025 Report

As an advisor to global high-net-worth individuals, navigating the increasingly complex landscape of wealth management, taxation, and social responsibility is an important part of the job.

The recent STEP 2025 report, "Attitudes to Wealth," provides invaluable insights into the shifting perspectives of wealth holders. Here are the key findings from the report:

• Financial security for future generations remains a top priority for most wealth holders. This involves not only preserving wealth but also ensuring that the next generation is educated on responsible wealth management.
• There is a growing awareness of social responsibility, particularly among younger generations. However, this awareness has yet to translate into significant action. Integrating ESG factors into investment strategies is becoming increasingly important.
• While taxation remains a key concern, there is a noticeable shift towards a more balanced approach that prioritises efficiency, compliance, and long-term planning. This shift moves away from aggressive tax minimisation strategies.
• Effective communication within families about wealth and associated planning is crucial but often lacking. Addressing privacy concerns and navigating complex family dynamics are essential for preventing future conflicts.
• There is a need for more education on trusts and equivalent structures. Many wealth holders hold misconceptions about trusts, viewing them as tools solely for the wealthy or for tax avoidance. Understanding the legitimate purposes and benefits of trusts is important.
• A holistic approach that leads to more comprehensive and personalized planning is highly valued. Engaging in meaningful conversations and considering clients' values and goals is key to effective wealth management.
• The rise of AI and automation is transforming the wealth management industry. Embracing technology responsibly, using it to complement rather than replace human expertise, can enhance service delivery and engagement.
• Building trust and long-term relationships with advisors is essential. Positioning advisors as trusted partners who provide personalized, ethical, and transparent advice can foster deeper connections.

The STEP 2025 report provides a comprehensive overview of the evolving attitudes towards wealth, taxation, and social responsibility. By understanding these insights, HNWI advisers can better help clients manage their wealth and navigate the complexities of modern wealth planning.