Wealth management firms are preparing for $83.5 trillion to change hands over the next two decades, creating the next generation of high-net-worth investors, according to Capgemini’s 2025 world wealth report.
This handover will unfold in three phases: 30% of beneficiaries will receive an inheritance by the end of 2030, 63% by the end of 2035 and 84% by 2040.
“The great wealth transfer will be a defining moment for the industry,” Kartik Ramakrishnan, head of Capgemini’s financial services strategic business unit, said in a statement. “Despite global wealth on the rise, 81% of inheritors plan to switch firms within one to two years of inheritance. Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector.”
Ramakrishnan noted that the next generation of wealthy individuals has vastly different expectations from their parents, and this requires firms to shift away from traditional strategies to effectively cater to their needs.
“Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees,” he said.
Capgemini found that a third of advisors were dissatisfied with their firms’ lack of digital capabilities, which they said negatively affects their productivity and creates a technological divide. In addition, 62% of next-gen investors said they would follow their advisor if they moved to a different firm.
Altogether, this directly affects retention, as advisors struggle to engage these digital-native clients, the report said.
Capgemini’s report covers 71 countries, accounting for more than 98% of gross national income and 99% of world stock market capitalization. It is based on three polls: a survey of 6,472 high-net-worth individuals, including 5,473 next-gen members across the Americas, Europe, and Asia/Pacific and Middle East; an executive survey that garnered 141 responses across 10 markets, with representation from pure wealth management firms, universal banks, independent broker-dealer and family offices; and a relationship manager survey, executed by Phronesis Partners, that received 1,306 responses across 12 markets.
To Better Serve Next-Gens
Capgemini’s report emphasizes that wealth management firms need to refresh and revamp their services and offerings to resonate with the next-gen customer base:
Private equity and cryptocurrencies: Nine in 10 advisors observe a greater interest in alternative assets among this group of investors compared with baby boomers.
New offshore booking centers: Half of advisors said their lack of capabilities in emerging wealth hubs — Singapore, Hong Kong, United Arab Emirates and Saudi Arabia — will drive these clients to other firms, as they seek diversification, better returns and a favorable regulatory environment.
Tailored services: Next-gen investors rank concierge services among the ones they most want in their wealth management firm, such as luxury travel, medical care and safeguarding against cyber threats.
Digital interactions: Advisors rank a digital platform that provides a holistic client view and actionable insights as the most important capability to effectively serve next-gen high-net-worth individuals, followed by intelligent automation of operational tasks like meeting summaries and emails.
HNW Population Growth
The global population of high-net-worth individuals — those with investable assets of $1 million or more, excluding their primary residence, collectibles, consumables and consumer durables — rose by 2.6% in 2024, according to the research. This increase was driven by 6.2% growth in the population of ultra-wealthy individuals — those with $30 million or more of investable assets — as strong stock markets and artificial intelligence optimism boosted portfolio returns.
North America saw the biggest gains, with the high-net-worth population rising by 7.3% against a backdrop of favorable interest rates and strong U.S. equity market returns.
Asia/Pacific’s wealthy population increased by a more modest 2.7%, albeit with notable variability across the region: Japan and India both registered 5.6% growth, while China’s wealth sector fell by 1%.
In contrast, Europe’s high-net-worth population declined by 2.1% because of economic stagnation in major countries; the Middle East’s also by 2.1%, driven by lower oil prices; and Latin America’s by 8.5% because of currency depreciation and fiscal instability.
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