During the past year, global wealth among high-net-worth individuals (HNWIs) surged by 4.2%, with their population growing by 2.6%, according to Capgemini’s World Wealth Report 2025.
This steady growth seemingly underscores a thriving wealth management industry, but the report highlights a shift on the horizon: the “great wealth transfer.”
Over the next two decades, an estimated USD 83.5 trillion in assets will transition to younger generations—Gen X, Millennials, and Gen Z, collectively termed “Next-gen HNWIs.”
This monumental transfer is reshaping the priorities and strategies of wealth management firms worldwide.
Capgemini’s report draws on comprehensive data, surveying 6,472 HNWIs, including 5,473 Next-gen HNWIs, across four regions: the Americas, Europe, Asia-Pacific, and the Middle East.
Additionally, insights from 141 wealth management executives and 1,306 relationship managers across these regions, combined with a market-sizing model covering 71 countries (representing 98% of global gross national income and 99% of world stock market capitalization), provide a robust foundation for its findings.
The research report reveals that Next-gen HNWIs are distinct in their investment priorities, digital engagement preferences, and demand for value-added services, presenting both challenges and opportunities for wealth management providers.
The great wealth transfer is not merely a shift in assets but a transformation in expectations.
Next-gen HNWIs prioritize investments that balance capital preservation with growth, often leaning toward sustainable and impact-driven opportunities.
Unlike their predecessors, they favor digital platforms for seamless interaction and expect personalized financial advice tailored to their unique goals.
This generational shift demands that wealth management firms rethink traditional approaches to client engagement and service delivery.
To address these evolving needs, Capgemini proposes a three-part strategy for wealth management firms to maintain their current business while capitalizing on new revenue streams.
The first pillar, boosting engagement, emphasizes delivering robust and tailored investment strategies.
Next-gen HNWIs seek portfolios that align with their values, such as environmental, social, and governance (ESG) investments, while ensuring both stability and growth.
Firms that can craft sophisticated, customized strategies will be better positioned to attract and retain this demographic, driving long-term growth.
The second pillar, delighting Next-gen HNWIs, focuses on expanding personalized financial advice and wealth management offerings.
Younger HNWIs value holistic services that go beyond traditional investment management, including tax planning, estate planning, and lifestyle-oriented solutions.
By leveraging data analytics and artificial intelligence, firms can deliver hyper-personalized experiences that resonate with tech-savvy clients.
This approach not only fosters loyalty but also extends the firm’s reach to a demographic that prioritizes trust and alignment with their financial and personal aspirations.
The third pillar, empowering relationship managers, underscores the importance of equipping advisors with advanced digital tools and capabilities.
Relationship managers are the linchpin of client retention, and Next-gen HNWIs expect seamless, tech-enabled interactions.
By integrating tools like AI-driven portfolio analytics, client relationship management (CRM) systems, and real-time market insights, firms can enhance the efficiency and effectiveness of their advisors.
This ensures that relationship managers can meet the high expectations of Next-gen clients while maintaining the human touch that remains critical in wealth management.
The implications of the great wealth transfer are seemingly significant.
As USD 83.5 trillion changes hands by 2048, wealth management firms must act decisively to capture the opportunities presented by Next-gen HNWIs.
Those that fail to adapt risk losing relevance in an evolving market.
By embracing digital innovation, tailoring offerings to younger investors, and empowering their teams, firms can not only navigate this transition but also potentially thrive in it.
Capgemini’s World Wealth Report 2025 serves as a clarion call for the industry.
The great wealth transfer is not a distant future—it’s happening now.
Firms that align their strategies with the priorities of Next-gen HNWIs will secure their place in this new phase of wealth management.