Historical Amount of Ultra-High Net Worth Wealth to be Transferred

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.

You can read the full report here.