McKinsey: Wealth Management Shifts Toward Holistic Life Planning and Risk Aversion
The quality of advisory skills is becoming the central focus of wealth management as affluent individuals increasingly seek advisors capable of handling non-financial matters like lifestyle transitions and caregiving logistics. A McKinsey & Company survey of 5,500 European respondents conducted between March and April 2026 revealed that 33% to 37% are interested in long-term care insurance or health protection. This trend is mirrored in Asia, where institutions like HSBC Singapore partner with healthcare brands to provide medical diagnostics and health assessments to high-net-worth (HNW) clients.
According to Million-Dollar Round Table CEO Stephen P. Stahr, clients across Asia are prioritizing retirement security, healthcare expenses, and wealth transmission over specific investment selection due to rising life expectancies. Rather than searching for individual products, clients are focused on managing longevity risks, balancing growth with protection, and passing down wealth in alignment with their personal values. McKinsey’s European data confirmed a parallel interest, with 32% to 41% of respondents seeking lifetime income products like annuities. Notably, 70% of HNW individuals—those with financial assets exceeding EUR 2 million—stated it is vital for their advisors to assist with housing choices, lifestyle shifts, and caregiving arrangements. McKinsey emphasized that wealth management has expanded from simple asset allocation to navigating uncertainty and major life decisions.
The study also highlighted a widespread decline in risk tolerance across all wealth tiers compared to previous data. The share of affluent clients (assets between EUR 50,000 and EUR 500,000) identifying as risk-takers fell from 29% in 2024 to 24% in 2026. The shift was even more pronounced among HNW individuals, where the proportion of risk-takers dropped from 40% to 31%. This points to a more risk-averse and discerning client base, with a larger portion of affluent respondents factoring risk profiles heavily into their decisions. Conversely, skepticism toward digital solutions is fading; distrust of robo-advisories dropped from 37% to 27% among affluent clients, and from 23% to 16% among HNW individuals since 2024.
Click here for more on Finance and Investing
