The global population of high net worth individuals (HNWIs) increased by 2.6 per cent in 2024, although the number of dollar millionaires in the UK fell by 14,000, Capgemini Research Institute has revealed.

Its World Wealth Report 2025 also found that the global ultra HNWI population grew by 6.2 per cent last year, driven by strong stock markets and AI-optimism boosted portfolio returns.

The largest increase in HNWIs was in North America, which experienced a 7.3 per cent rise, with the US adding 562,000 dollar millionaires during the year.

However, Europe saw its HNWI population fall by 2.1 per cent due to ‘economic stagnation’ in major countries, with the UK, France, and Germany losing 14,000, 21,000, and 41,000 dollar millionaires respectively.

Despite this, the trend of increased wealth concentration continued in Europe, with its population of ultra HNWIs rising by 3.5 per cent.

Wealth transfer

The report noted that wealth management firms were actively preparing for a new era of wealth transfer, whereby $83.5trn will be passed over in the next two decades.

It estimated that 30 per cent of HNWIs would receive an inheritance by the end of 2030, 63 per cent will inherit wealth by the end of 2035, and 84 per cent by 2040.

To attract this next generation of HNWIs, Capgemini said wealth management firms needed to “refresh and revamp” their services and offerings, including on private equity and cryptocurrencies, new offshore booking centres, tailored services, and digital interactions.

Attracting the next generation and retaining advisers

Capgemini’s report found that, as at January 2025, HNWI investors had 15 per cent of their portfolios in alternative assets, while 61 per cent of Millennial and Gen Z HNWIs had allocated capital to higher growth assets and niche product offerings.

One in three advisers expressed dissatisfaction with their wealth management firms’ lack of digital capabilities.

Capgemini warned that insufficient support would made advisers a ‘flight risk’, with 62 per cent of next generation HNWIs saying they would follow their adviser if they moved to a different firm.

Furthermore, the report raised concerns about talent shortages in the industry amid the upcoming wealth transfer.

One in four advisers plan to be on the move in the next 12 months, while 20 per cent said they would retire by 2035 and 48 per cent planned to retire by 2040.

Capgemini argued that firms must empower and engage advisers with an intuitive digital experience across all channels to secure their loyalty.

“The great wealth transfer will be a defining moment for the industry,” commented Capgemini Financial Services Strategic Business Unit CEO and group executive board member, Kartik Ramakrishnan.

“Despite global wealth on the rise, 81 per cent of inheritors plan to switch firms within one to two years of inheritance.

“Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector.

“The next generation of HNWIs 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.

“Firms must also prepare to equip advisers with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees.”

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