Australians need help on how to manage huge wealth transfer

Ever wondered about passing on your hard-earned cash to the kids? Turns out, most Aussies have! They have this burning desire to share the wealth with the next generation. But guess what? They're scratching their heads, wondering, "How do we make that happen?" Fear not, because according to a fresh report from Fidelity International and MYMAVINS, financial advisers are like the superheroes swooping in to save the day.

Enter the stage, "Rainbow’s End," Fidelity's latest report. It's like their secret weapon to help financial advisers figure out the magic formula for satisfying retirees' needs. They undertook a survey with 1,500 Aussies from all walks of life — Gen Y, Gen X, Baby Boomers, and the Silent Generation — to get the lowdown on their thoughts about passing on the dough.

Simon Glazier, at Fidelity International, spilled the beans, saying, "We've eavesdropped on 1,500 Aussie chats, and guess what? People dream big about leaving a financial legacy, but when it comes to making actual plans, it's like crickets." Apparently, a lot of the older folks are laser-focused on their legacy, moving from retirement planning to actual estate planning. But here's the catch—they need a bit of hand-holding because the financial confidence fairy seems to have missed their address.

The Productivity Commission predicts a whopping $3.5 trillion is going to change hands from the older Australians to their children and grandchildren. It's the "Great Wealth Transfer". Rainbow’s End revealed that while two-thirds of legacy-leavers have a will, less than one in ten have a solid estate plan. It's like planning a road trip without a GPS — sure, you might get there, but who knows where you'll end up?

Half of Aussies are as clueless as I am when I try to assemble IKEA furniture. They want to leave a financial legacy, but ask them how. Superannuation system? That's where the financial advisers ride in on their white horses, helping people navigate the legacy maze like the pros they are. Four out of five legacy-leavers with a plan think financial advisers should be there to provide professional support, and you guys can be the rockstars guiding investors on their wealth journey."

But wait, there's more! Rainbow’s End spilled the beans that 40% of people prefer sharing their wealth as a living legacy, not just a distant bequest. Almost three in five are planning to leave their superannuation savings behind for their loved ones. It's like they're passing the financial torch to the next generation.

And what about those awkward family discussions on who gets what? Turns out, most legacy-leavers want to have those heart-to-hearts but admit it's easier said than done. Enter the financial planners, who, according to Glazier, can step in as mediators, bringing order to the chaos.

Leaving a legacy isn't just about cash, though. It's the whole shebang—supporting family goals, expressing gratitude, finding personal fulfillment, and preserving those family traditions.