The COVID-19 pandemic has stirred things up for the global economy and the way one approaches wealth around the world. An example of this was exhibited in a recent report by Knight Frank, an international property consultancy, which found that 84 percent of Indian ultra-high net worth individuals (UHNWIs) have reassessed their attitudes to succession planning in light of COVID-19.

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In the report titled ‘Attitudes Survey 2021’, it was stated that globally, around 60 percent of UHNWIs have reassessed their succession planning during the pandemic. Canada, at 90 percent, tops the list of countries that have redefined succession planning, followed by Turkey at 85 percent and India at 84 percent.

As per the survey, 30 percent of ultra-wealthy Indians placed ‘transferring of wealth to the next generation' among the top three worries. In comparison, only 16 percent saw it as an exciting opportunity.

The gap between the two was slimmer in the global context. Here, 28 percent of UHNWIs respondents positioned this among the top three worries, while 23 percent of respondents see opportunity in 2021.

Respondents across the globe — on being asked whether the ongoing pandemic has caused them to review their succession plans towards property investment — said that 48 percent of family offices have reassessed their attitudes to succession planning, compared to nearly 60 percent of UHNWIs.

The survey also found that 89 percent of Indian UHNWIs respondents felt that “new investment opportunities opening up in the post-COVID world will largely excite them for wealth creation”. As much as 61 percent felt that the wealth creation would be aided by technology disruption, while 23 percent of ultra-wealthy Indians opined that an improvement in domestic government policy will help them.

The figures could be attributed to the fact that the pandemic has affected the older generations’ growth in wealth disproportionately, 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. 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,” he said, adding that many of India’s economic reforms and policy amends have helped attract global investors.

The sample for the Attitudes Survey consisted of over 600 private bankers, wealth advisors and family offices. The respondents represent a combined wealth of more than US$3.3 trillion.

(Edited by : Abhishek Jha)