Bucking market headwinds, slightly more than half of Charles Schwab high net worth retail clients say they plan to gift some of their wealth this year, according to the latest Schwab HNW Client Pulse Survey.
Among those planning to give, 25% say they’ll give more than they did last year, while 7% say they’ll give less.
The survey results reflect confidence among HNW clients that their financial plans are resilient despite market volatility and uncertainty, Schwab said in a news release. While 59% of HNW clients surveyed said they have a bearish market outlook, over half with that sentiment expressed confidence that they have a plan that can withstand a market correction. A greater portion, 67%, are confident in their decision-making.
Among HNW Schwab clients surveyed, 57% plan to give some of their assets in the next five years, and 74% plan to do so over the course of their lifetime.
“HNW investors may be cautious about the markets, but they’re still acting with intention and making decisions that align with their long-term goals, whether that means giving now or planning to transfer wealth over time,” said Susan Hirshman, Director of Wealth Management for Schwab Wealth Advisory and Schwab Center for Financial Research. “Confidence doesn’t always mean optimism about the market, but it does mean having clarity in your strategy and financial plan, and the discipline to follow it.”
Among those who are making gifts this year, most are primarily focused on supporting their immediate families. A large majority (84%) plan to give assets to their children, with 91% of that giving aimed at offspring over the age of 18. Half (50%) have had conversations with their children about the gifts or plan to.
Cash continues to be the most common way to give, but almost 25% of HNW clients plan to transfer investments, demonstrating the use of appreciated assets to reduce capital gains and estate taxes as part of tax and estate planning.
But there’s more to gifting than financial optimization. The top drivers listed by HNW clients include:
General financial support for family (66%)
Estate and tax planning (34%)
Funding for education (30%)
Help with life milestones, such as a wedding, home purchase, or starting a business (21%)
“Gifting is about more than passing down wealth — it’s about passing down purpose,” said Hirshman. “Yes, tax and estate strategies are important, but the conversations around gifting often center on values, legacy, and preparing the next generation to be thoughtful stewards of what they receive.”
About the Survey
The Schwab HNW Client Pulse Survey examines the outlooks, expectations, investing patterns and points of view of clients at Charles Schwab who have more than $1M in investable assets. The survey of 183 HNW clients at Schwab fielded from April 1 to 14.
