Huge Wealth Transfer on Tap
The Capgemini report says wealth management firms are actively preparing for a new era of wealth transfer in which $83.5 trillion will change hands over the next two decades, creating the next generation of HNWIs. According to the report, this handover will unfold in three phases: 30% of HNWIs will receive an inheritance by the end of 2030, 63% will inherit wealth by the end of 2035, and 84% by 2040.
“The great wealth transfer will be a defining moment for the industry. 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,” said Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member.
“The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents. This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey. 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.”
As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies. They are willing to take more risks to expand their wealth—allocating capital to higher-growth asset classes and niche product offerings, notably by 61% of Millennial and Gen Z HNWIs.
• See Capgemini Research Institute’s World Wealth Report 2025 here.
• See Henley & Partners USA Wealth Report 2025 here.
SEE ALSO:
• U.S. Millionaire Ranks Swell by 500,000
• How Advisors Can Prepare for the $124T Wealth Transfer
• 2025’s Best Places in the World to Retire
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.