The coming inheritors of $83.5 trillion will take more risks as investors, seek new advisors

June 10, 2025 at 10:37 AM EDT

Close to $84 trillion in wealth will transfer to a younger generation of investors over the next 20 years, with as much as 30% of those funds being inherited by the end of 2030, according to new research from global consulting firm Capgemini. That transfer will create next-gen high-net-worth individuals whose investing mindset will be much different from their elders.

These younger investors, most notably members of the Millennial and Gen Z cohorts, will be willing to take more risks to expand their wealth, allocating capital to higher growth asset classes and niche product offerings. Such high-worth investors have already parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies.

The Capgemini Research Institute’s World Wealth Report 2025, published earlier in June, found that wealth management firms are already preparing for this new era of wealth transfer. The report highlights that wealth management firms need to refresh and revamp their services and offerings to resonate with the next-gen HNWI customer base.

“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,” she said in a press release posted on the company’s website.

The research showed that to attract next-gen HNWIs, wealth management firms are going to have to rethink a number of their practices, including:

Private equity and cryptocurrencies: 88% of advisors observe a greater interest in alternative assets amongst this group of investors over baby boomers
New offshore booking centers: 50% of advisors indicate their lack of capabilities in emerging wealth hubs – Singapore, Hong Kong, UAE and Saudi Arabia – will drive these clients to alternate firms, as they seek diversification, better returns and a favorable regulatory environment
Tailored services: concierge services such as luxury travel, medical care and safeguarding against cyber threats rank as the top non-financial value-added service most sought after
Digital interactions augmented by AI: advisors rank a digital platform providing a holistic client view and actionable insights as the most important capability to effectively serve next-gen HNWIs, followed by intelligent automation of operational tasks like meeting summaries and emails

Advisors may follow investors out the door

According to the report, one-in-three advisors express dissatisfaction with their firms’ lack of digital capabilities, negatively impacting their productivity, and creating a technological divide. In addition, 62% of next-gen HNWIs say they would follow their advisor if they moved to a different firm.

Beyond digital resources, the industry is on the cusp of a talent shortage amid an unprecedented transfer of wealth to Gen X, Millennial, and Gen Z inheritors. In the next 12 months, one in four advisors plan to be on the move, with a majority transitioning to a competitor firm and a few starting their own ventures. Additionally, 20% of advisors say they will retire by 2035, with 48% planning to retire by 2040.

“As the great wealth transfer unfolds, the wealth management industry will need to reimagine product offerings through tailored investment options for next-gen HNWIs. Firms must empower and engage advisors with an intuitive digital experience across all channels to secure their loyalty,” the report concludes.

The World Wealth Report 2025 covers 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization. The Capgemini 2025 Global HNW Insights Survey questioned 6,472 HNWIs including 5,473 Next-gen HNWIs across four regions: Americas, Europe, and Asia-Pacific and Middle East.

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The coming inheritors of $83.5 trillion will take more risks as investors, seek new advisors

Advisors may follow investors out the door

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