Sefiani is proud to partner with Generation Life – leading Australian financial services firm providing innovative investment products for Australian retirees and high-net-wealth individuals – to support the launch of an integrated thought leadership campaign: Reimagining Legacy.

How do Australians leave a legacy to ensure their loved ones are looked after once they’re gone?

Currently, Australia is facing the biggest intergenerational wealth transfer ever, estimated to be $224 billion by 20501. How the Government, the private sector, financial advisers, and individuals can and should be prepared is dominating the news agenda.  

In light of this, Generation Life (in partnership with Sefiani) conducted research to explore what Australians think about the concept of ‘legacy’, their plans for leaving a legacy, and what support they want from their financial advisors.  

The research found that 65% of Australians are confident they will leave a legacy for future generations, yet only 14% have a plan on how to do this.  

To bridge this knowledge gap, Sefiani developed a long-form thought leadership report, filled with actionable insight on how financial advisers can support their clients to achieve a fulfilling retirement and transfer wealth to their loved ones with ease. 

An integrated campaign launch

The report was launched successfully at a media round table event in Sydney last week – attended by Generation Life CEO Grant Hackett OAM, key-opinion leader and finance expert, Noel Whittaker, as well as a range of top-tier and trade media, including the Australian Financial Review, Money Management and Independant Financial Advisor).

Over the coming weeks, the paid social media element of the campaign will be activated – driving lead generation to a dedicated campaign landing page, where qualified leads will be picked up and nurtured by the Generation Life team.

Read the full press release below.

Estimated $224 billion Australian wealth transfer opportunity may be at risk as less than a quarter (23%) of over-50s have a plan for how they will leave a financial legacy

The wider population is even less prepared (only 14% have a plan in place to leave a legacy) as saving for a happy retirement and leaving a legacy outrank buying property as the ‘Australian Dream’

67% of Australians feel confident they’ll be able to leave a legacy when they pass away, but just 14% actually have a plan in place to do so, according to new research from Generation Life, the leading provider of the new generation of tax-effective investment bonds and lifetime annuity solutions.

The research also revealed that saving for a happy retirement is Australia’s top financial goal (38%) while the ‘Australian dream’ of paying off a mortgage and putting a deposit on a new property rank as fourth and fifth. Over-50s then prioritise leaving a legacy as their top financial goal (34%), but worryingly, just 23% have a plan in place for how they’ll do so.

$224 billion each year in inheritance is expected to be passed between generations by 2050[1] but it seems much of this could be lost during transfer, with 1 in 5 (20%) Australians over-50 are worried about additional costs and legal fees impacting their ability to leave a legacy. A knowledge gap on how best to leave a legacy could also impact this intergeneration wealth transfer, with those who are over 50 over-relying on wills (59%) and superannuation (21%) to leave a legacy. Meaning many may be at risk of losing significant amounts of their estate through taxes, unnecessary fees and mismanagement.

Adding to this knowledge gap, is that over-50s are trying to plan their financial legacy on their own, with just 18% relying on the expertise and support of the nation’s financial advisers.

Generation Life’s research explored the concept of ‘legacy’ amongst Australians so they could work with financial advisers to empower the population to successfully build, protect, leave and preserve their legacies.

Grant Hackett, CEO, Generation Life reflected on what the findings mean for Australian families: “We know that building wealth is half the battle but preserving it for loved ones to ensure they’re looked after once you are gone is an emotional challenge for many Australians. Baby Boomers are holding around $4.9 trillion in assets,[2] so there’s an urgent need to help them optimise this wealth. By doing so, they can enjoy the rewards of their hard work with a happy, dignified retirement and leave money and assets as a legacy for their loved ones.”

He continued: “Our research shows that people are overwhelmed by investment options so choose to take no action. With the support of a financial adviser, you can build, protect, leave and preserve the legacy that’s right for you, whether you want to give your child a financial head-start, bypass a generation, solve complex family structures and alleviate the funeral burden on your family when you pass away.”

Other key findings from the research include:

• 1 in 3 (33%) Australians believe super is the best way to optimise wealth and leave a legacy even though this is not its purpose.
• Despite the power of the new generation of investment bonds to leave a legacy as a tax-effective investment solution that offers flexibility, control and access at any time, 90% of Australians aren’t using, or aren’t aware of, this innovative solution. This is a significant knowledge gap for financial advisers to help solve so all Australians can leave a legacy based on their wishes.

Noel Whittaker, Personal Finance Expert and Author further explained the benefits of investment bonds and seeking professional advice to leave a legacy: “Investment bonds are the perfect solution for investing for grandchildren. All you have to do is make an investment into the bond and sit back and watch it grow. The important thing here is to know the difference between a wish and a plan. It’s clear there are specific strategies that can be used to leave a legacy, but people need good advice to achieve them.”

Generation Life’s tax-optimised, new generation of investment bonds have been crafted to suit different legacy goals and work well for clients looking to accumulate wealth and manage their estate planning strategies with greater flexibility, control and certainty. Find out more about the research findings and Generation Life’s innovative solutions by registering your interest for the Reimagining Legacy guide here.

[1] Productivity Commission, Research paper – Wealth transfers and their economic effects

[2] Generation Life – Locking in the Next Generation by Core Data 2022