The Lombard Odier survey, which included over 390 high-net-worth individuals in the Asia-Pacific region, found that 64.2% prioritize wealth preservation, yet only 26.9% have a complete succession plan. This 'intention-implementation gap' suggests that many families are unprepared for the impending intergenerational wealth transfer, particularly concerning first-generation entrepreneurs.
John Woods, Lombard Odier's Asia chief investment officer, expressed concern that without proper governance and planning, families risk losing their wealth. The survey highlighted that regions like Japan, the Philippines, Malaysia, and Hong Kong showed particularly low succession preparedness, with about half of respondents in these areas lacking any succession plan.
Cultural sensitivities and communication barriers further complicate these discussions, as nearly 29% of respondents cited a lack of open communication as a significant governance challenge. Louisa Loo, head of wealth planning for Asia at Lombard Odier, noted that many families delay these crucial conversations, which could leave them vulnerable in the face of unexpected events