SINGAPORE - UBS, the largest private bank in the world, has moved to dispel a common assumption that younger heirs are eager to switch bankers once they inherit their wealth, arguing instead that most prefer continuity, not disruption.

In its first dedicated global report on next-generation wealth holders, the Swiss bank found that a majority of heirs value advisory relationships established by the older generation. 

The report showed 51 per cent of respondents indicated a preference to continue working with either the same wealth manager as their parents or another adviser within the same institution.

The finding challenges a long-held industry belief that younger clients will overhaul their parents’ banking arrangements as an estimated US$83 trillion (S$105.28 trillion) in private wealth is set to change hands over the next two to three decades.

The wealth transfer is already reshaping not just investment strategies, but also family dynamics and longstanding advisory models. 

Globally, about 33 per cent of families are already in the process of transferring wealth, while another 25 per cent are actively planning for it or preparing with advisers.

The numbers are higher in the Asia-Pacific, with more than 40 per cent of families in the process of transferring wealth or planning with advisers. 

The study also showed that wealth succession in the Asia-Pacific is often tied to family milestones such as the death of a family member. This is in contrast to Europe and North America, where it is more closely associated with a shift in responsibility. 

That perception evolves across generations: About 40 per cent of second- and third-generation respondents view succession as a responsibility shift, rising to 50 per cent among fourth- and fifth-generation families.

Ms Young Jin Yee, co-head of UBS Global Wealth Management Asia-Pacific, said the findings highlight both continuity and change in how wealth is managed.

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