Why two-thirds of Singapore’s wealthy fear their legacy won’t last – and what must change

IN A city-state globally known for its financial discipline and planning culture, a striking paradox has emerged: a large majority of wealthy Singaporeans don’t believe their wealth will survive into the next generation.

Based on a Sun Life survey released in November, 67 per cent of high-net-worth individuals (HNWIs) worry their wealth won’t persist beyond their children’s generation.

This level of profound concern reflects the evolving challenges of wealth stewardship. But what’s really driving this anxiety? Is it just market volatility, or something deeper in how wealth is managed, communicated and transferred?

And, if wealthy families are keenly aware of estate planning tools such as wills and trusts, why are so few actually using them?

The answers cut to the heart of how we think about legacy, risk and family wealth in 2026 and beyond.

Behind the fear: not just markets

At first glance, financial markets might seem the obvious threat. Nearly 53 per cent of HNWIs in Sun Life’s survey listed market volatility as a worry affecting their portfolio value.

But what’s driving the concern is not merely market gyrations; it’s the intersection of complex portfolios, changing family dynamics and evolving preferences among younger generations.

Globally, nearly US$90 trillion in wealth will transfer to next-generation holders over the next two decades. This unprecedented transfer triggers deeper and more existential anxieties captured in the earlier survey, where 75 per cent of HNWIs believe their heirs are not financially prepared to manage inherited wealth, and 59 per cent fear family conflict over assets.

Many families are realising that wealth transfer is the new frontier of risk management. The question is whether the next generation has the skills, discipline and shared values to steward a family’s capital through time, life changes and economic cycles.

In Asia, and particularly in Singapore – a leading wealth hub – the intergenerational challenge lies in aligning investment structures with human capital readiness, and not merely asset performance.

UOB’s 2025 Asia Generational Wealth Report showed that younger heirs increasingly prioritise impact, independence and entrepreneurship over maintaining scaled-up family wealth in the same form as their parents.

This mindset shift, combined with the complexity of today’s diversified portfolios across markets, private assets, real estate and business interests, means that traditional accumulation strategies do not automatically translate into sustainable intergenerational legacies for Singapore’s high-net-worth families.

How are Singapore’s wealthy responding?

The city-state’s HNWIs are not sitting still. Sun Life found that 61 per cent of Singapore’s wealthy prioritise investing for long-term growth rather than short-term gains; and 67 per cent underline the importance of financial protection through the use of life insurance and structured products.

A majority are engaging heirs in financial conversations, with 61 per cent teaching financial basics as part of legacy preparation.

Singapore HNWIs recognise that legacy is not just about passing wealth, but also about building capability in the next generation. Yet there remains a significant gap between intent and execution.

Mind the gap: knowing but not doing

For a cohort highly sophisticated in building capital, Singapore’s HNWIs lag in the use of wealth transfer instruments. Despite high awareness of wills and estate documents (78 per cent) and trusts (72 per cent), only 41 per cent use wills and estate documents, and only 45 per cent utilise trusts. Even more telling, just 25 per cent have fully completed and communicated their legacy plans.

Estate planning is as much emotional as it is technical. Discussing mortality, distribution of control and future roles forces conversations that Singapore families often defer or avoid. Discomfort with discussing death or money is an obstacle for 35 per cent of Sun Life’s respondents. Many families also fear it will spark conflict or unsettle younger members.

Another roadblock is concerns of complex legal, tax, structural and expense issues related to the use of trusts. Trusts are still perceived as unnecessary, particularly for assets that can otherwise pass via wills or Central Provident Fund nominations. There is also the misconception that trusts involve giving up control.

In reality, these tools, including multigenerational and dynasty trusts, can institutionalise control across decades, dictating how and when heirs access capital – precisely the kind of mechanism that can alleviate concerns about next-generation financial preparedness.

The implementation gap demonstrates that Singapore’s wealthy need guidance and frameworks that support family communication and governance – beyond conventional legal, accounting and financial advice.

Moves shaping wealth planning in 2026

My work with wealth holders in the US, Europe and Australia has moved from transactional investing to relational investing: structuring capital not just for returns, but for continuity, purpose and intergenerational dialogue.

The most successful single-family offices don’t chase returns. They engineer portfolios that can survive human behaviour.

While resilience, multi-cycle planning and diversification into private and alternative assets matter, one of the most powerful – yet underreported – allocations is investment into people and decision-making systems. These include money literacy programmes for next-gen heirs, behavioural coaching, simulation-based learning platforms and family governance systems.

While not traditional asset classes, such investments protect every other asset by reducing behavioural risk, the biggest destroyer of private wealth. This is the real evolution of asset allocation for Singapore’s wealthy families.

The critical legacy question for Singapore’s wealthy

The fear that wealth won’t last beyond one’s generation isn’t irrational. It’s a strategic signal, telling us that wealth preservation is intentional design. Legacy is the intersection of capital, capability and conversation. Wealth that endures is less about market timing and more about family readiness.

Singapore’s HNWIs must shift from asking “How much capital can I accumulate?” to “How do I structure capital and cultivate the capability to steward it across generations?”.

If that question drives your planning in 2026, you’re already thinking like someone who wants their legacy to last, not just accumulate.

The writer is a global money expert with The Better Foundation and a Penguin Random House author