‘Asset rich but strategy poor’: Wealthy Gen X lacking legacy planning

Released in January, a KPMG report found that Gen X had overtaken Baby Boomer as the biggest holders of housing assets, hitting an average value of $1.31 million in property. At the same time, Gen X also overtook the older generation to have the highest ownership of shares, averaging some $256,000, highlighting the considerable wealth held by this cohort.

With this demographic now in their 40s and 50s, HLB Mann Judd wealth management partner, Lindzi Caputo, said many Gen X Australians have become “asset rich but strategy poor”.

“They’ve benefited from compulsory superannuation and rising property prices, yet few have a structured plan to make that wealth work for them. With retirement on the horizon, Gen X needs to shift from autopilot to active planning,” Caputo said.

“For many, financial independence or early retirement could be a realistic goal, but it requires more than relying on property and superannuation. Now is the time to plan intentionally.”

Even as the standard retirement age creeps closer for some of this generation, Caputo argued those in their late 40s may be 20 years away from that life stage, highlighting the importance of considering investment opportunities outside of super and home ownership.

“If the mortgage is less than 50 per cent of the property’s value, that’s often the tipping point where it makes sense to start looking at other investment opportunities. A more balanced portfolio with liquid assets such as shares or managed funds can provide both growth and flexibility,” Caputo said.

She added: “Debt can be a powerful tool, but it needs to be managed prudently. Borrowing to invest in liquid assets can accelerate wealth creation, provided repayments are sustainable and the asset can be easily sold if needed. And ideally, that debt should be cleared before retirement.”

When it comes to engaging in inheritance and wealth transfer planning conversations, Caputo explained, framing it around legacy can “help families align their values and intentions”.

“Structures like testamentary trusts can protect wealth and ensure it benefits future generations,” she said.

“When these conversations happen in advance, with powers of attorney and enduring guardianships in place, it reduces strain on families and ensures smoother transitions. Once an inheritance is received, paying down non-deductible debt and maximising super contributions should be the first priorities.”

However, she said that planning ahead is key, highlighting the important role of professional financial advice in helping Australians in retirement and legacy planning.

“With strategic thinking, diversification, and open family conversations, this generation can create a retirement that is both secure and fulfilling.”