Sun Life Asia survey finds Malaysians are increasingly formalising inheritance plans, with education emerging as a top priority and market volatility raising concerns over long-term wealth preservation.
Malaysia leads six Asian markets in formal legacy planning, but many Malaysians still worry about passing on lasting wealth. A new Sun Life Asia survey found that 80% of Malaysians who intend to leave financial assets fear their wealth will not survive beyond the next generation.
The survey also found significant progress in inheritance planning. In 2026, 37% of Malaysian respondents had fully documented and communicated their legacy plans. That figure more than doubled from 15% in 2025. Meanwhile, the share of respondents without a legacy plan fell from 23% to just 10%.
However, only 23% of Malaysians said they felt fully prepared for their legacy. This gap highlights a key challenge: families must do more than document their wishes. They also need to prepare beneficiaries to manage and preserve inherited wealth.
Sun Life Asia published these findings in its latest report, Passing the Torch: When Legacy Means More Than Money. The study surveyed 3,073 people across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam. Malaysia accounted for 506 respondents.
“Malaysia has made clear progress in formalising legacy plans, with more families putting their intentions in writing and discussing them with the people involved,” said Ho Teck Seng, President and Country Head of Sun Life Malaysia.
“The continuing concern about whether wealth will last shows that documentation is only one part of preparedness. Families also need to consider what they want their wealth to achieve, whether those intentions are understood and whether future beneficiaries are ready for the responsibilities they may inherit.”
Market Volatility Tops Malaysia’s Wealth Preservation Concerns
Market volatility ranks as the biggest threat to long-term wealth preservation among Malaysians who worry about their legacy. Some 54% cited market fluctuations as a concern. Another 49% pointed to beneficiary preparedness, while 47% worried about potential family conflict.
Legal, regulatory and tax changes also pose challenges. Some 37% of respondents said these changes could affect their legacy plans.
Across the six Asian markets, beneficiary preparedness ranks first among wealth preservation concerns at 52%. Market volatility follows at 49%, while family conflict accounts for 44%.
Despite these concerns, Malaysians feel increasingly prepared to pass on their wealth. In 2026, 58% felt fully or somewhat prepared for their legacy, up from 47% in 2025. The share who felt fully prepared also rose, from 19% to 23%.
These findings suggest that more Malaysians are taking steps towards inheritance planning. However, economic uncertainty and family dynamics continue to challenge their confidence in preserving wealth across generations.
Millennials Worry Most About Inheritance but Remain Optimistic
Malaysian Millennials face a striking contrast between concern about wealth preservation and optimism about their financial legacy.
Among Millennials who intend to leave financial assets, 90% worry their wealth will not last beyond the next generation. Gen Z respondents also share this concern, with 82% expressing similar fears. Among Gen X and Baby Boomers, the figure stands at 71% for each group.
Yet Millennials remain the most optimistic about their wealth’s long-term impact. Some 69% believe their wealth will benefit future generations. By comparison, 47% of Gen Z, 53% of Gen X and 48% of Baby Boomers share this view.
The findings highlight the importance of preparing beneficiaries alongside financial assets. Financial education, open family discussions and clear inheritance arrangements can help younger generations manage wealth responsibly.
Education Leads Malaysians’ Legacy Planning Priorities
For many Malaysians, a meaningful legacy extends beyond money. They also want to create opportunities for their children and future generations.
Education ranks as the most popular legacy priority. Some 51% of respondents placed educational opportunities among their top three priorities. Wealth came next at 49%, followed by family traditions at 44%.
Financial assets still play a central role in these plans. The survey found that 83% of Malaysian respondents intend to leave financial assets or wealth to others.
Among those planning to pass on wealth, 53% want their assets invested for long-term growth. Another 52% want their wealth to support family members during their lifetime, while 50% intend to use it to fund education.
These priorities show how inheritance planning can support more than financial security. Families can also use their wealth to fund education, preserve traditions and create opportunities for future generations.
Family Conversations Remain a Key Challenge
Although more Malaysians now formalise their legacy plans, many families still struggle to communicate their intentions fully.
The survey found that 66% of Malaysian respondents said older generations had shared at least some aspects of their legacy plans. However, only 32% said their families had communicated those plans in full.
Formal family meetings remain the most common setting for legacy discussions, cited by 51% of respondents. Informal conversations follow at 40%.
Financial advisers also play a growing role. The share of respondents who reported communication about legacy plans through financial advisers rose from 16% in 2025 to 31% in 2026.
Overall, 45% of Malaysian respondents had already sought professional legacy-planning advice. Another 35% said they would like to seek advice in the future.
Even so, Malaysians believe families should lead the process. Some 32% said parents or guardians should take charge of legacy planning, compared with 18% who selected financial advisers or wealth professionals.
Trust remains essential when families seek professional help. Among those looking for advice, 57% prioritised trustworthiness and integrity when choosing an adviser. Another 50% highlighted expert knowledge.
Sun Life Malaysia Introduces Structured Payouts for Legacy Planning
Sun Life Malaysia has introduced its Distribution Settlement Option (DSO) to give clients more flexibility when transferring wealth to loved ones.
The feature allows clients to distribute payouts over time instead of paying the entire amount as a lump sum. Sun Life Malaysia includes DSO in its latest suite of products and plans to extend the feature to more products.
According to the company, DSO offers structured payouts without requiring a separate trust arrangement. This could help clients avoid potentially significant trust fees while giving them greater control over how and when beneficiaries receive funds.
Structured payouts can complement wider family discussions about inheritance and financial security. Families can use clear distribution arrangements to communicate their intentions and establish how beneficiaries should receive funds. They should also review their plans as family needs and circumstances change.
“Putting a plan in place is an important step, but families also need to keep the conversation going so that everyone understands what the plan is intended to achieve and how it should work as circumstances change,” Ho said.
“Features such as DSO can make structured legacy planning more accessible to Clients across all income segments, while professional advice can help families work through the financial, legal and protection considerations involved.”
Planning Beyond Wealth Transfer
Malaysia’s progress in formal legacy planning marks an important step towards better wealth preservation. Yet the survey shows that documentation alone cannot guarantee a lasting financial legacy.
Families must also communicate their intentions, prepare beneficiaries and consider how inherited wealth can support future generations. By combining clear inheritance plans with financial education and professional guidance, Malaysians can take a more considered approach to passing on their wealth.
Read the full Passing the Torch: When Legacy Means More Than Money report from Sun Life Asia for further insights into legacy planning across the region.
