- An estimated $84 trillion in assets is expected to transfer to younger generations by 2045, prompting a major shift in wealth management expectations.
- 81% of wealthy inheritors plan to switch financial advisors, citing outdated services, poor digital interfaces, and lack of alignment with ESG and tech-forward expectations.
- Self-directed investing is rising, with younger clients favouring automated platforms and lower-fee models over traditional human advisors.
- Wealth management firms that do not evolve risk significant loss of assets under management; those integrating AI, ESG, and family governance may see up to 40% higher retention by 2030.
- Global wealth migration trends further complicate the landscape, increasing demand for advisors with cross-border and geopolitical acumen.
The intergenerational transfer of wealth is accelerating, with trillions expected to change hands over the coming decades, but a growing number of inheritors are signalling dissatisfaction with the status quo in wealth management. Recent surveys indicate that many millennials and Gen Z individuals inheriting substantial assets are poised to part ways with their parents’ financial advisors, citing outdated services and a mismatch with modern expectations. This shift underscores broader trends in the industry, where digital innovation and personalised strategies are redefining how high-net-worth individuals preserve and grow their fortunes.
The Great Wealth Transfer and Its Disruptive Force
As baby boomers retire and pass on their estates, estimates suggest that up to $84 trillion in assets could be transferred to younger generations by 2045, according to research from Cerulli Associates. This monumental shift, often dubbed the Great Wealth Transfer, is not merely a handover of funds but a potential upheaval for wealth advisors. Inheritors, particularly those under 45, are increasingly unimpressed by traditional advisory models that emphasise conservative asset allocation and face-to-face consultations. Instead, they demand seamless digital platforms, sustainable investment options, and holistic services that align with their values, such as environmental, social, and governance (ESG) criteria.
A study by Capgemini, published in mid-2025, revealed that 81% of wealthy inheritors plan to switch advisors upon receiving their inheritance. The primary grievances include poor digital interfaces and a lack of innovative products tailored to contemporary lifestyles. For instance, many next-generation clients prioritise impact investing or cryptocurrency integration, areas where legacy firms have been slow to adapt. This dissatisfaction is not anecdotal; it reflects a generational divide where tech-savvy heirs view wealth management through the lens of user experience, much like they do with consumer apps.
Why Inheritors Are Breaking Ties
Historical patterns provide context for this trend. A 2016 Forbes analysis noted that inheritors often fire their parents’ advisors due to mismatched priorities, with projections of $41 trillion in U.S. wealth transfers by 2052 amplifying the stakes. Fast-forward to 2025, and the narrative persists: a Professional Wealth Management report from 2024 highlighted that 70% of wealthy families lose their fortunes by the second generation, often due to inadequate preparation and governance. Inheritors, burdened by sudden affluence, seek advisors who offer more than portfolio management—they want mentors in family governance, tax optimisation, and legacy planning.
One key factor is the rise of self-directed investing. Data from The Wall Street Journal in 2021 showed that 70% of households with net worth over $500,000 headed by someone under 45 preferred self-managed strategies, up from 57% a decade earlier. This trend has likely intensified, driven by accessible platforms like robo-advisors and low-cost index funds. Younger inheritors, raised in an era of fintech disruption, question the value of high advisory fees when algorithms can handle diversification and rebalancing efficiently.
Moreover, sentiment from industry sources underscores a push for evolution. Analysts at JP Morgan Private Bank, in a 2024 report, described the “creative tension” between generations as a catalyst for innovation, warning that without proper mentoring, inheritors risk financial mismanagement. Credible sentiment from Capgemini surveys marks a bearish outlook for traditional advisors, with 81% of respondents expressing intent to switch, labelling it as a pressure point for the sector to revamp offerings.
Implications for Wealth Management Firms
For wealth management firms, this exodus represents both a threat and an opportunity. Incumbent advisors must pivot towards hybrid models that blend human expertise with AI-driven tools. Forecasts from analyst models, such as those by Blacktower Financial Management in April 2025, predict that firms embracing AI and ESG will capture a larger share of transferred assets. A labelled model from Cerulli Associates estimates that advisors who engage next-generation clients early could retain up to 40% more assets under management by 2030, compared to those sticking to outdated practices.
- Digital Transformation: Firms are investing in apps for real-time portfolio tracking and virtual consultations, addressing the digital shortfall cited in CNBC reports from June 2025.
- Sustainable Investing: With inheritors favouring ESG, advisors are incorporating green bonds and impact funds, potentially boosting returns through diversified, values-aligned portfolios.
- Family Governance: Proactive education on trusts and succession planning, as emphasised in a 2025 Economic Times article, can mitigate the “shirtsleeves to shirtsleeves” proverb, where wealth dissipates in three generations.
From a macroeconomic perspective, this transfer could fuel innovation in fintech. Startups offering bespoke wealth tech are attracting venture capital, with projections indicating a 15–20% annual growth in digital wealth platforms through 2030, per analyst forecasts. However, risks abound: without robust governance, inheritors might fall prey to volatile investments or scams, exacerbating wealth inequality.
Case Studies and Broader Trends
Consider the Williams Group’s 20-year study on 3,200 families, which found 90% wealth loss by the third generation due to poor communication and planning. Successful families, as detailed in Verdence Capital Advisors’ 2025 insights, implement structured governance, including regular family meetings and ethical investment charters. In Europe, JP Morgan’s wealth advisory notes from 2024 stress mentoring to bridge generational gaps, a strategy that could stabilise asset retention.
Globally, trends in wealth migration add complexity. A 2025 report from Ainvest highlights high-net-worth individuals relocating for tax advantages, prompting advisors to offer geopolitical planning. In Asia and the Middle East, similar patterns emerge, with next-gen inheritors favouring advisors versed in cross-border strategies.
Investor Strategies Amid the Shift
Investors eyeing the wealth management sector should monitor firms adapting swiftly. Publicly traded entities like Charles Schwab or BlackRock, with strong digital arms, may benefit from inflows. Analyst-led forecasts suggest a 10–15% upside in stock valuations for adaptive players by 2027, driven by asset growth from the transfer. Conversely, laggards face margin compression as fees decline under competitive pressure.
In summary, the impending wave of inheritances is reshaping wealth advisory, compelling a rethink of services to suit a digital-native cohort. Firms that anticipate these needs—through innovation, education, and alignment with inheritor values—stand to thrive, while others risk obsolescence. As the transfer unfolds, the true measure of success will be in preserving legacies beyond mere financial metrics.
References
- Blacktower Financial Management. (2025, April). Private wealth trends and forecasts. https://blacktowerfm.com/news/private-wealth-trends
- Capgemini. (2025). World Wealth Report 2025. https://www.thinkadvisor.com/2025/06/12/81-of-wealth-inheritors-say-theyll-fire-their-parents-advisor/
- Cerulli Associates. (2024). Generational wealth transfer outlook.
- CNBC. (2025, June 5). Next-generation wealth advisors. https://www.cnbc.com/2025/06/05/next-generation-wealth-advisors.html
- Forbes. (2016, June 14). Why inheritors fire their parents’ financial advisors. https://www.forbes.com/sites/russalanprince/2016/06/14/why-inheritors-fire-their-parents-financial-advisors/
- JP Morgan Private Bank. (2024). Wealth advisory sentiment and generational dynamics.
- Professional Wealth Management. (2024). https://www.pwmnet.com/content/05895264-2d45-5af9-9abc-18ea93d20826
- Verdence Capital Advisors. (2025). Family legacy planning case studies.
- Williams Group. (n.d.). Multi-generational wealth study.
- Ainvest. (2025). Global wealth migration trends 2025. https://www.ainvest.com/news/global-wealth-migration-trends-2025-strategic-geopolitical-tax-planning-high-net-worth-investors-2508/
- Luxuria Lifestyle. (2025). How affluent families protect their legacies in 2025. https://luxurialifestyle.com/how-affluent-families-protect-their-legacies-in-2025
- Think Advisor. (2025). Wealth management digital trends. https://www.thinkadvisor.com/2025/06/12/81-of-wealth-inheritors-say-theyll-fire-their-parents-advisor/
- Wealth Management. (n.d.). The children of the wealthy fire their parents’ advisors most of the time. https://wealthmanagement.com/business-planning/the-children-of-the-wealthy-fire-their-parents-advisors-most-of-the-time
