Australia is on the cusp of experiencing one of the largest intergenerational wealth transfers in history. Known as the “Great Wealth Transfer” this phenomenon is expected to see an estimated AUD $3.5 trillion pass from Baby Boomers to younger generations over the next two decades. This unprecedented transfer of wealth underscores the critical importance of estate planning for Australians of all ages.
As this wealth transfer unfolds, digital solutions are transforming the way people approach estate planning. Recent data from Willed, an online will-making service based in Australia, reveals fascinating insights into how technology is changing this crucial aspect of financial planning.
Overcoming Procrastination
One of the most striking findings is that 38% of respondents reported that they “finally got around to” making a will using an online service, suggesting that digital solutions are helping people overcome one of the biggest hurdles in estate planning: procrastination.
Digitised services are more accessible and less daunting than their traditional alternatives, removing barriers for individuals who would otherwise have kept their estate planning on the backburner — where it has been for years.
Addressing Key Concerns
The data also sheds light on why people feel compelled to create a will. A whopping 54% of respondents cited their primary concern as avoiding “unwanted hassles and expense for loved ones” in the event of their passing.
Given the scale of the unfolding Great Wealth Transfer, this concern becomes even more significant. Clear estate planning can help ensure that wealth is transferred smoothly and in accordance with the wishes of the deceased, minimising potential conflicts and legal complications for the next generation.
Breaking Down Barriers
Traditionally, creating a will has been perceived as an expensive and complex process. Willed’s findings confirms this, with 48% of respondents saying they delayed making a will because they thought it would be too expensive, and 44% because they believed it would be too complicated.
The Emotional Impact
Perhaps one of the most compelling findings is the emotional impact of these digital solutions. Half of the users reported feeling “relieved” after completing their will online, illustrating the peace of mind that comes with having one’s affairs in order, especially important given the scale of wealth transfer expected in the coming years.
Pricing Power
Pricing remains a crucial factor. Willed found that 33% of users were persuaded to “finally” get their affairs in order by fair pricing or receiving a special offer, emphasising the importance of competitive and transparent pricing models in driving adoption of fintech solutions of the most significant economic shifts in Australian history.
