Intergenerational Wealth Transfer: Seizing the HNW Opportunity

1.1. Over the next 10 years, $8.6tn of global HNW wealth will change hands
1.2. Key findings
1.3. Critical success factors

2.1. $8.6tn of global HNW wealth will change hands over the next 10 years
2.1.1. The opportunity is not spread equally across the globe
2.1.2. Aging Europe makes intergenerational wealth transfer a top priority for local wealth managers
2.1.3. HNW wealth transfer is a story about patriarchs, but this is slowly changing
2.1.4. Inheriting spouses will play a key role in intergenerational wealth transfers

3.1. Globally, 28.3% of HNW clients’ children move their parents’ assets to a new provider when they inherit
3.1.1. North American inheritors are significantly more loyal than their global peers
3.1.2. An opportunity for one wealth manager is a threat to another - and complacency is high
3.2. Building ties with the next generation of HNW investors early on is the single most effective means of retention
3.2.1. Wealth managers should encourage their clients to involve their children in the estate planning process
3.2.2. Involving the next generation of business owners is a must in countries with an aging entrepreneurial community
3.2.3. Involving the next generation will also have a positive effect on retention rates
3.2.4. Too few wealth managers target HNW clients’ children at a young age
3.2.5. Access to an advisor younger generations can identify with is more important than brand image, but neither approach should be used in isolation
3.2.6. A greater willingness to take risks makes retention more of a challenge
3.3. Targeting the next generation of HNW investors begins with understanding their differing servicing needs
3.3.1. The next generation of HNW investors is independent, internationally active, and less involved in traditional industries
3.3.2. The next generation of HNW investors expects a multi-channel approach
3.3.3. Investing in socially responsible companies is important to the next generation
3.3.4. Social media remains underutilized as a communication and marketing tool

4.1. Abbreviations and acronyms
4.2. Definitions
4.2.1. HNW
4.3. Supplementary data
4.4. Methodology
4.4.1. 2018 Global Wealth Managers Survey
4.4.2. WealthInsight
4.4.3. Net importance score
4.5. Secondary sources
4.6. Further reading

Table 1: HNW age distribution, 2018
Table 2: Question: What are the two most important factors minimizing the risk of the next generation of HNW investors switching to a competitor after inheriting? (part one)
Table 3: Question: What are the two most important factors minimizing the risk of the next generation of HNW investors switching to a competitor after inheriting? (part two)
Table 4: Net importance score: Relative to your current generation of HNW investors, how important would you say the following products, services, and features are to the next generation

Figure 1: $4.5tn of HNW wealth will change hands in North America over the next 10 years
Figure 2: A fifth of Europe’s HNW population is above the age of 70
Figure 3: Female HNW investors tend to be younger than their male counterparts
Figure 4: UBS has declared females a key target segment, requiring more focus on legacy planning
Figure 5: North American HNW inheritors are more loyal than their global peers
Figure 6: 52% of wealth managers globally regard intergenerational wealth transfer as an opportunity
Figure 7: Involving the next generation during the estate planning process is the most effective means of retention
Figure 8: 24% of industry participants rate HNW demand for inheritance planning as very strong
Figure 9: HSBC Private Bank’s succession planning proposition is aimed at HNW clients and their families
Figure 10: 85% of business owners in the US are aged 65 or above
Figure 11: Credit Suisse targets the next generation of HNW investors early on
Figure 12: BBVA introduced the Next Generations program to educate the next generation of clients
Figure 13: Globally, a quarter of HNW clients’ children have an account with their parents’ provider in their childhood
Figure 14: UBS’s refreshed brand image is in line with the values of the next generation of HNW investors
Figure 15: Globally, the next generation of HNW investors is more willing to take risks
Figure 16: The rising number of female HNW investors calls for a more targeted servicing approach
Figure 17: BMO targets family business owners concerned about succession - a key demographic in Canada
Figure 18: Younger clients are much more open to digital financial management tools
Figure 19: A digital strategy is of greater importance to the next generation of HNW investors
Figure 20: Younger generations are notably more likely to use robo-advisors
Figure 21: Younger generations’ philanthropic endeavors are more likely to focus on children
Figure 22: Personal Capital targets wealth investors with its SRI offering
Figure 23: In the majority of countries, social media is more relevant to younger clients
Figure 24: BNP Paribas actively promotes its wealth brand on Twitter