The world’s ultra-wealthy are going to be shifting trillions of dollars to their children over the next 10 years.
More than one million individuals worth more than $5 million are expected to transfer almost $31 trillion to their heirs by 2033, according to a recent report by data firm Altrata.
There are nearly 4.4 million people with net worths of more than $5 million worldwide, who collectively hold more than $88 trillion in collective assets. This means that over a quarter of the world’s wealthiest are expected to transfer their fortunes over the next decade.
Here’s a look at what the global wealth transfer will look like by the digits.
87%: The proportion of wealth transfers carried out by “very high net worth” individuals, whose fortunes total between $5 million and $30 million. Ultra wealthy individuals with more than $30 million, comprising the remaining 13% of wealth transfers.
$13.9 trillion: The dollar amount the 37,000 individuals worldwide with a net worth of more than $100 million will transfer by 2033.
1,380: How many billionaires are expected to redistribute their wealth over the next decade. While this group will account for just 0.1% of the total number of wealth transfers, it makes up 16%, or almost $5 trillion, of the collective net worth being passed on.
2/3: The ratio of wealthy donors older than 70.
First in line
Sorry millennials and Generation Z, but Gen X — those born between the mid-1960s and the early 1980s — are first in line to inherit from their wealthy parents.
Gen Z and millennials aren’t going to be empty-handed over the next decade. They’re more likely to receive money from their grandparents, which tend to be smaller than sums inherited from their parents.
The next decade of inheritors will have a particular focus on social issues, especially the environment and healthcare, than the current holders of wealth, the report found.
“The younger generations are very focused on charity and foundations,” said D’Arcy Fellona, client success manager in the financial services and luxury unit at Altrata. “This doesn’t necessarily imply larger donations, but there is certainly stronger engagement and an interest in wanting to be more involved with the work of organizations and seeing their impact over time.”