Given the age-old proverb that family businesses go from “shirtsleeves to shirtsleeves in three generations”, it is hardly surprising that families are focused on safeguarding their wealth against uncertainty. Against a backdrop of heightened geopolitical tensions and fluctuating market conditions, they are relying on the steadying hand of trusted advisors to preserve and grow their wealth.

The Family Barometer is Julius Baer and PwC Switzerland’s authoritative annual survey that monitors the shifting opinions of financial services experts who work with and advise wealthy clients. For the 2024 edition, we canvassed more than 1,800 internal and external experts from Europe, Asia, the Middle East and Latin America – resulting in our most globally balanced survey to date.

Once again, our Family Barometer sheds light on affluent families’ priorities from a global and a regional perspective. For example, our survey found that there was global alignment when it came to intergenerational wealth transfer and succession planning. Regional divergences surfaced when it came to family governance, with Latin American families placing a higher importance on establishing robust governance structures. 

2024’s top five discussion topics

Here’s a run-down of the five topics that the experts cited as those they most commonly discussed with clients beyond investments, ranked in order of importance: 

1. Intergenerational wealth transfer and succession planning 

This was this year’s top family-related topic across every region. As family businesses often play a significant role in regional economies, the emphasis on succession planning reflects a proactive approach to safeguarding their future. The increasing amount of wealth to be transferred and the international nature of today’s affluent families calls for a coherent plan across different jurisdictions. 

For instance, we found that families in the Middle East reported the highest interest in discussing intergenerational wealth transfers with our advisors. Read more here about going global with succession planning and get further insights on our findings by accessing the Family Barometer 2024.

2. Taxation 

Taxation is receiving greater attention among wealthy families across most regions, taking first place among the societal topics in this year’s survey. The global significance of taxation is shown by the fact that it ranked as the top concern in Europe, Asia and Latin America and the second highest in the Middle East. Recent political tensions and changes of government in several major economies mean that tax regulations are likely to continue to be front of mind for wealthy families in the near future.

3. Individual and family growth opportunities

These opportunities, particularly wealth education programmes for the rising generation, have become a greater priority for wealthy families. By educating heirs about the stewardship of wealth, families can diminish the risk that their wealth dissipates after one generation. Conducting family meetings with the involvement of professional advisors, which is strongly preferred in Europe and Latin America, reflects an understanding that external expertise can help families foster both personal development and financial acumen.

4. Family governance

This is crucial, in our eyes, to maintaining and growing a family’s legacy. The affluent families surveyed this year agree, ranking it as the third-most important topic in most regions this year. Despite the reportedly high level of professionalisation in governance structures, however, there remains a reliance on informal frameworks – highlighting a gap between the perceived level of professionalisation and the actual implementation of formal governance frameworks.

Learn more here about how good governance can map the direction of your family wealth and business and explore the insights in this year’s Family Barometer.

5. Political stability 

Political stability became a top-three societal topic for the first time this year, illustrating concerns in wealthy global families about issues such as political polarisation and diverging economic tectonics. The more fractured global economy is reshaping the interactions between different jurisdictions and having a bigger impact on asset allocation. Naturally, when families face outside instability, they seek the guidance of professional advisors to increase the resilience of their wealth management strategies.

What do this year’s findings mean for the future of family wealth?

Ultimately, the 2024 Family Barometer bears out last year’s indications that it has become a more uncertain environment in which to preserve wealth. Families are advised to look beyond short-term performance so that they and their wealth not only withstand unpredictable times but emerge stronger. 

This makes it all the more essential that they work with professional advisors to establish a solid financial plan – one which not only protects their wealth against the negative forces of market volatility, geopolitical turmoil and the resulting ‘unknown unknowns’, but also ensures their wealth remains abundant for future generations.