2021 State of Wealth Report

Crestone Wealth Management is proud to present the third annual 2021 State of Wealth report findings, produced in conjunction with independent researchers CoreData to better understand the motivations, decisions, and aspirations of Australia’s high net worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs).

This year’s research reveals an evolved understanding of discoveries first made in the inaugural 2019 report, including the notion of ‘risk-averse risk-takers’, a tag applied to HNW and UHNW individuals who do not always apply sophisticated reasoning to their investment decisions.

In addition, readers will find insights into:

Lessons learned in 2020
The COVID-19 pandemic led many to re-evaluate their financial strategy. We have seen changes in investment advice and asset selection behaviour, with a bigger focus on diversification, philanthropy, sustainable investing - and overall increased uptake of professional financial advice.

The wealth paradox
We see in this research that the wealthier an individual is, they tend to be more engaged and enjoy investing more, but that doesn’t necessarily mean they are a more sophisticated investor.

Retirement and succession focus
The ambitions of wealthy individuals have not changed. Modest ambitions of saving for retirement or providing for one’s family remain paramount.

Increased uptake of financial advice
We’re seeing improved financial behaviour, such as increased diversification and formally documented investment plans and wealth strategies, possibly driven by the
pandemic and increased threats to financial security.

Optimism for the future
Many HNW individuals are feeling optimistic for both the Australian and global economies, with an increased intention to invest. However, it’s important to remain grounded and make sure that the lessons of 2020 are not forgotten.

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Download the Report