Altrata, a prominent player in the people intelligence space, has published a new report projecting a substantial global wealth transfer among the world’s well-heeled elite over the next decade.
Altrata’s Family Wealth Transfer 2024 report anticipates that over 1.2 million affluent individuals will transfer $31 trillion by 2033, surpassing the GDP of the US and exceeding ten times the market capitalization of Microsoft.
Drawing on Altrata's Wealth-X data, the report emphasizes the impending generational wealth transfer among individuals with a net worth of at least $5 million. It notes that individuals with net worths exceeding $100 million will constitute nearly half of this considerable wealth transfer by 2033.
Among its key findings, the report indicates rich individuals in North America and Europe will dominate global wealth transfers, making up 71 percent of the total. In North America, nearly 600,000 affluent individuals will transfer just over $14 billion. By contrast, Asia will see only one-fifth of these wealth transfers.
A significant portion of those transferring wealth, 87 percent, are “very high net worth” individuals, with $5 million to $30 million in net worth.
The research shines a spotlight on Generation X, noting most heirs in their mid- to late 40s are set to inherit the fortunes from their wealthy parents first. That flies in the face of the widespread emphasis on Generation Y and Generation Z inheritors, who are more likely to receive inheritances from their grandparents.
The report also reveals a shift in philanthropic interests among beneficiaries, who are increasingly focused on environmental and healthcare causes and show a higher engagement level with philanthropy than those passing on their wealth.
Corporate executives are set to comprise over 70 percent of ultra-wealthy individuals transferring wealth over the next decade, with 20 percent being entrepreneurs and 7 percent being sole inheritors – those who are ultra-wealthy purely through inheritance.
Another key trend among very-high-net-worth families is the growing complexity of succession planning as silver-spoon clans become more globalized, emphasizing the crucial role of expert advisors.
The report notes a change in the timing of wealth transfers, which are increasingly occurring during the lifetime of family heads. The increase in lifetime giving comes as families weigh practical considerations such as tax planning and the desire to prepare heirs for future financial stewardship.
Looking to refine your strategy for investing in stocks in the US market? Discover expert insights, key trends, and risk management techniques to maximize your returns
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
