The last 10 years have seen a great leap in the number of truly wealthy people around the world, and while growth is expected over the next decade, the latest Knight Frank Wealth Report forecasts a slowdown in the rate of increase.
In fact, the 10th annual survey found that two-thirds of the 400 private bankers and wealth advisors surveyed said they expect that to be the case.
One of the biggest concerns expressed by respondents, who represent 45,000 ultra-high net worth individuals with at least $30 million each, regards succession and inheritance. More than 60% said their children wouldn’t be encouraged to make their own wealth and about half said they wouldn’t know how to invest properly.
(Check out last year’s findings in Top 10 Big Trends Among the Ultra-HNW.)
The report detailed the attitudes and trends of the richest of the rich and looked back at the last decade and at what lies ahead. Knight Frank found that charitable activities were expected to grow over the next decade compared with the last 10 years. The main motivation cited for philanthropy was personal fulfillment.
Check out 10 interesting findings about the ultra-wealthy:
Biggest Risks to Wealth Creation:
Succession and inheritance issues: 67% over next 10 years (56% for the previous 10 years)
Tax for the Wealthy: 62% (58%)
Global Economic Conditions: 61% (47%)
Stock Market Volatility: 52% (32%)
Online Security and Privacy: 39% (9%)
Compliance Issues: 34% (12%)
Personal and Family Wealth: 33% (28%)
% Who Say Wealth Creation Will Slow Over Next Decade:
Latin America: 100%
North America: 68%
Russia & CIS: 50%
Middle East: 47%
UNHW Have Taken a More Active Role in Managing Their Wealth Over the Last Decade:
Strongly Agree: 46%
Slightly Agree: 41%
Neither Agree nor Disagree: 8%
Slightly Disagree: 4%
Strongly Disagree: 1%
Most Important Cities to the UNHW:
(Based on where they live, educate children, spend leisure time and grow their businesses)
- New York
- Hong Kong
Expectations for Philanthropic Giving:
Increase a Lot: 25% for next 10 years (14% for the previous 10 years)
Increase Slightly: 55% (52%)