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There are some certainties regarding the great wealth transfer, one of which there are many uncertainties, including the various estimates regarding the dollar amount of said transfer.
At the high end, the $100 trillion wealth transfer will shift an obviously massive amount of capital from older folks to their younger heirs. Another guarantee is that movement of capital of that size and scope has profound implications for the wealth management industry. It’s not just because more than three years of U.S. GDP will change hands, though that is a valid reason in its reason.
The other reason why the great wealth transfer has the potential to dramatically alter the wealth management industry is because it could cause a substantial amount of client attrition. The 2025 edition of the World Wealth Report, courtesy of the Capgemini Research Institute, indicates a staggering 81% of “next generation millionaires – Gen X, millennials and Gen Z – are considering leaving their parents’ advisory firms.
Granted, Capgemini polled next generation millionaires across four regions: Americas, Europe, Asia-Pacific, and the Middle East, so it’s possible the U.S. figure is lower (or higher). Obviously, the idea of losing eight in 10 clients is frightening, but the silver lining is that ominous scenario is avoidable.
Proactive, Products and Tech
Accounting acronym liberties, advisors can approach boosting retention of younger clients after their parents pass through the lens of PPT: being proactive, having the investment product offerings, and embracing technology.
In other words, ensuring younger heirs sign onto become clients after their parents pass away amounts to re-recruitment – a task advisors should not delay on. That’s vital, particularly for advisors looking for high and ultra-high-net-worth business because, by some estimates, 60% ($60 trillion) of the aforementioned $100 trillion that will change hands will do so among billionaires and millionaires.
“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,” said Kartik Ramakrishnan, CEO of Capgemini’s financial services strategic business arm, in the report. “Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees.”
Advisors can’t afford to delay PPT preparation because as Capgemini points out, 30% of high-net-worth individuals will receive their inheritances by 2030 with 63% joining that party five years later. Indeed, re-recruitment starts today and it can be as simple as encouraging clients that are parents to bring their heirs to meetings.
PPT Part Two
Encouraging clients to bring their heirs to meetings is a nice touch. At the very least, it shows the advisor cares, but advisors need to do much more when it comes to getting next generation millionaires to sign on the dotted line. That includes upping the practice’s social media and tech proficiencies because those are expectations of younger, wealthier prospects and if those expectations aren’t met, those prospects will take their business elsewhere.
When it comes to products and asset classes, younger high-net-worth investors want access to much more than equities and fixed income, meaning “alts” such as cryptocurrency and private credit/equity.
“As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies,” according to Capgemini. “They are willing to take more risks to expand their wealth – allocating capital to higher growth asset classes and niche product offerings, notably by 61% of millennial and Gen Z HNWIs.”
Fortunately, advisors acknowledge as much as 88% say they see greater interest in private credit and crypto among younger clients than is witnessed among baby boomers. Observance is a first step and one that could help advisors more business when wealthy boomer clients pass on.
Related: Thematic ETFs Ideal Ways for Connecting With Younger Clients