Projected Wealth Transfer to Exceed $31 Trillion by 2033

A recent report by Altrata forecasts a significant wealth transfer among the global elite over the next decade. According to the Family Wealth Transfer 2024 report, over 1.2 million affluent individuals are expected to transfer a staggering $31 trillion by 2033. This amount surpasses the GDP of the United States and is more than ten times the market capitalization of Microsoft. The report, based on data from Altrata’s Wealth-X, highlights the forthcoming generational wealth transfer among individuals with a net worth of at least $5 million. Notably, those with net worths exceeding $100 million are predicted to account for nearly half of this transfer.

Key findings indicate that North America and Europe will lead global wealth transfers, representing 71 % of the total. In North America alone, nearly 600,000 affluent individuals are set to transfer just over $14 billion. In contrast, Asia is expected to see only one-fifth of these wealth transfers.

A significant 87 % of those transferring wealth are classified as “very high net worth” individuals, with net worths ranging from $5 million to $30 million. An emerging trend is the growing complexity of succession planning among very high-net-worth families. As these families become more globalized, the role of expert advisors becomes crucial.

The report also brings attention to Generation X, noting that most heirs in their mid-to-late 40s will inherit fortunes from their wealthy parents. This contrasts with the common focus on Generation Y and Generation Z, who are more likely to receive inheritances from their grandparents. Corporate executives are expected to make up over 70 % of the ultra-wealthy individuals transferring wealth over the next decade, with 20 % being entrepreneurs and 7 % being sole inheritors who gained their wealth entirely through inheritance.

Additionally, the report identifies a shift in philanthropic interests among beneficiaries. These heirs are increasingly prioritizing environmental and healthcare causes and demonstrating a higher level of engagement with philanthropy compared to their predecessors. The report also notes a shift in the timing of wealth transfers, with more occurring during the lifetime of family heads. This increase in lifetime giving is driven by practical considerations such as tax planning and the desire to prepare heirs for future financial stewardship.

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