The recognition of how intergenerational collaboration can add value in long-term investment decision making is on the rise. As our global economy undergoes a momentous transition, the integration of diverse generational perspectives offers more inclusive, innovative and balanced decision-making.
 
Younger generations emphasise different means of achieving societal goals


The younger generations demonstrate a shift in philanthropic and investment priorities from their precedents. Through workshops with over 150 young participants in 2024, Pictet observed new paradigms around impact and philanthropy, in which the importance of aligning capital allocation with broader societal goals was emphasised. The study also revealed that individuals aged 18-25 preparing for wealth stewardship responsibilities are redefining how to achieve these goals. They prioritise business decisions (44%) and investments (41%) as tools for driving change, over traditional philanthropy (25%). This reflects a broader trend in which younger generations view wealth as a means to catalyse systemic change rather than addressing issues in isolation.
Through impact investing, in which 86% of millennials involved in the study expressed interest, financial and social and environmental impact are sought mutually. At the same time, many millennials recognise the need for the broader integration of environmental, social and governance (ESG) criteria at a minimum, when striving to avoid investment decisions that undermine real world objectives. Notably, these approaches are long term and holistic in nature, presenting a diversion from the traditional strategy of maximising financial returns with one pool of capital and seeking positive impact with a separate pool.
 
Challenges in Intergenerational Collaboration


Despite its potential benefits, intergenerational collaboration is not without challenges. One significant hurdle is the divergence in priorities between generations. While preceding generations often focus on stability and causes like education and healthcare, younger generations tend to prioritise climate change, inequality and systemic innovation. Investment horizons are also inherently different. Younger generations can afford to take more investment risk and have a vested interest in generating impact that will shape the world they will ultimately inherit. Conversely, older generations may be more inclined to take environmental and social risks, as challenges around these will compound over the long term and ultimately impact them less if at all. Reconciling these differing priorities requires open dialogue and a willingness to adapt. 
 
Pictet’s Role in Fostering Intergenerational Collaboration


Pictet’s research and initiatives highlight the importance of a holistic “sphere of influence” approach, in which businesses, investments and philanthropy are aligned to create a resilient and sustainable economy. This vision underscores the firm’s dedication to not just delivering financial returns, but generating environmental and social returns as well.


Successful intergenerational collaboration will be necessary to address the complex challenges we face today. By integrating diverse perspectives and time horizons and fostering open dialogue, organisations like Pictet are paving the way for a more inclusive and sustainable future. While challenges remain, the potential for transformative impact will increase the relevance of intergenerational collaboration in optimal long-term investment management and capital allocation decision making.

– Author: Christoph Courth, Head of Philanthropy Services, Pictet Wealth Management

– This contribution is brought to you by Pictet, a valued diamond event partner of Building Bridges 2025