Historical Amount of Ultra-High Net Worth Wealth to be Transferred
At least $16 trillion of global ultra high net worth (UHNW) wealth will be transferred to the next generation over the next 30 years, according to the Wealth-X and NFP Family Wealth Transfers Report.
This will be the largest wealth transfer in history, creating a new crop of ultra wealthy individuals.
Some of the highlights of the report include:
- Nearly 40% of this family wealth transfer, US$6 trillion, is due to come from the largest group of UHNW benefactors, who are located in the United States.
- Wealth rises with age, and those UHNW individuals who are 80 years or older are worth five times more on average than those below 40 years of age – who have not yet made all of the wealth that they will ultimately transfer to the next generation.
- The majority of those passing on their wealth are self-made individuals.
- The United States will see the greatest amount of wealth transfers, with US$6 trillion set to change hands in the next 30 years — amounting to nearly 40 percent of the global total.
- Private holdings form the largest component of the net worth of UHNW individuals set to transfer their wealth, with US$6 trillion of UHNW wealth currently held in private companies.
- 68% of those UHNW individuals passing on their wealth are self-made individuals. It is crucial that the first generation transmits their business ethos and values to prevent the proverb “shirtsleeves to shirtsleeves in three generations” from coming true.