Wednesday 3 June 2020

Family wealth transfer to top $15trn by 2030: report

NEW YORK, June 27, 2019

More than $15 trillion in wealth will be transitioned from one generation to the next by the year 2030, says a new report from Wealth-X, a global ultra high net worth intelligence and data company.

For organizations seeking to understand and engage with the world’s wealthiest individuals, the report titled “A Generational Shift: Family Wealth Transfer Report 2019” provides unique intelligence to understand how current wealth patterns will evolve over the next decade.

For nearly a decade, Wealth-X has been tracking family wealth transfer issues as they pertain to the global ultra high net worth (UHNW) population.  The report takes into account very high net worth (VHNW) individuals, or those with $5 to $30 million in net worth, alongside UHNW individuals, or those with a net worth in excess of $30 million.

It leverages the Wealth-X global database of records on the wealthy to shed a spotlight on those individuals passing on wealth to the next generation.  From this dataset, the largest of its kind in the world, Wealth-X identifies differences in this population based on wealth tier, geographic region, source of wealth, and gender.

Key findings from the report include:

•    North America Leads – $8.8 trillion will be passed on in this region alone, a testament to the scale of wealth in the US. Europe possesses a slightly older wealthy population than the global average and will pass on a significant $3.2 trillion by 2030. Asia will account for just 12% of all wealth to be passed on, a total of $1.9 trillion, largely due to its substantially younger wealthy population.

•    Growing Awareness – given that the majority of wealthy people around the world are over the age of 60, wealth transfer has become a greater priority.

•    Concentrated Wealth – an estimated 18,500 individuals with a net worth of $100 million or more will be transferring a majority of this wealth – $8 trillion.

•    Generational Shift – more-so than their elders, the inheritors of this wealth maintain a more global outlook, seeking not only to preserve this wealth but also to find meaning in the way they use and manage it. – TradeArabia News Service


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