As trillions of dollars pass from older Australians to younger generations, families are increasingly clashing over how wealth should be managed. Disagreements are being fuelled by rising interest in ESG-focused investments, cryptocurrency and emerging technologies such as artificial intelligence.
These differences stem from contrasting experiences and expectations. Baby boomers have traditionally favoured property, shares in established sectors such as banking and resources, and income-based strategies. In contrast, younger generations are advocating for purpose-led investments, higher risk profiles and broader international exposure, often through exchange-traded funds and digital assets.
The impact of these tensions is being felt in practical ways, particularly within pooled investment vehicles like self-managed super funds (SMSFs). While SMSFs can help families collaborate on building retirement savings, they also require a shared appetite for risk. This becomes challenging when older members prefer stable income while younger ones back high-growth sectors including tech and AI.
Experts warn that leaving such disagreements unaddressed may lead to diminished wealth, strained family relations and a loss of legacy. Open communication across generations is now more important than ever. While differences in approach are natural, avoiding honest conversations is what truly endangers family wealth, especially considering Australia holds only a small share of the global investment market. This highlights the need for a more globally minded investment outlook.
