Between 2000 and 2020, the global balance sheet and net worth more than tripled. Wealth
grew from US$440 trillion in 2000 to US$1,540 trillion in 2020, whereas net wealth
jumped from US$160 trillion to US$510 trillion.

With the ageing out of the Baby Boomers, the wealth of the Millennials is coming closer – a
population group that makes up more than 27% of the population. Besides the steady
build-up of wealth, gifts or inheritances occasionally release considerable assets in a
single stroke, which have to be managed properly. Roughly 84 trillion dollars in total wealth is expected to be transferred by 2045. Even though this massive upheaval in the wealth management industry has been well-known in recent years, and the forthcoming change has been frequently pointed out, the reactions to it have been somewhat sluggish so far.

The next generation of investors, commonly referred to as Gen X, Millennials or Gen Y and
Gen Z, have grown up in a rapidly changing world with unique expectations and priorities.
As these individuals come of age and begin to accumulate wealth or inherit it from their
parents, it is important for the wealth management industry to understand their perspectives and adapt to meet their needs. Little surprise that young investors hold different expectations towards their wealth management service providers as compared to their parents or previous generations. Nevertheless, quite a few financial providers continue to use the same strategies for different target groups. In the long term, with a significant wealth transfer on the horizon, there is a “big shift” in the way advisors should target younger investors.

In this whitepaper, we will explore the expectations of younger generations towards wealth
management, including their attitudes toward risk, sustainability, and technology. We will
also discuss the implications of these expectations for financial advisors and institutions and
offer recommendations for how to serve this important demographic best. By understanding
the preferences and priorities of younger investors, the wealth management industry can
better position itself to meet the needs of the next generation of wealth holders.
According to McKinsey, “the world has never been wealthier“.

Since wealth is growing steadily around the world and at the same time, society as a whole is ageing, this growth in wealth coincides with an increase in the potential volume of inheritance. Wealth management is, therefore, a crucial aspect of financial planning, particularly for younger heirs. But moving wealth to the younger generations poses substantial challenges for wealth managers. With advancements in technology and a rapidly changing economic landscape,
the expectations of younger generations toward wealth management have evolved.

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