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What The Great Wealth Transfer Means For Luxury Marketers 

The world’s wealthiest individuals are set to transfer almost US$31 trillion in collective wealth to younger generations in the next decade, according to the 2024 Family Wealth Transfer report by Altrata, which draws on Wealth-X data. This staggering amount is greater than the gross domestic product of the US. 

This wealth transfer will likely significantly impact how luxury brands market to this ultra-wealthy cohort due to differing generational attitudes towards business, investments, social issues, and philanthropy.  

According to the report, Generation X, individuals in their mid-to-late 40s, will be the first in line to inherit, followed by millennials and Generation Z. 

This great wealth transfer will create a new generation of ultra-wealthy individuals – those worth more than US$5 million – shaking up the luxury industry. Individuals with a net worth of more than $100 million – known as Ultra-High-Net-Worth Individuals  – will account for more than half of the $31 trillion being passed on. 

Relevance is a leading luxury marketing agency that tracks the lifestyle and consumer behaviours of the world’s wealthiest individuals. 

Rumble Romagnoli, CEO and founder of Relevance, explains that now is the time for luxury brands to reconsider their marketing strategies.  

“My clients are not on Instagram, is a classic line I hear often; however, it is essential for marketing directors of luxury brands and high-value goods and services companies to stop thinking that their clients are 70+, not on mobile, digitally unaware and sitting at lunches oblivious to the world around them.  Even if they are today, their heirs and the people advising them are not. Every digital channel should now be considered when targeting UHNWIs. Target the heirs for long-term growth. They might even be advising their non-digital savvy parents.’’

Read on to explore the key takeaways from the Altrata Family Wealth Transfer 2024 report. 

Great Wealth Transfer Report 2024 Key Takeaways

Global wealth transfer by audience 

The next decade will see significant growth in the number of wealthy estates being passed on to the next generation, most notably by Very-High-Net-Worth Individuals, those with more than $5 million in assets. 

There are currently around 4.4 million VHNWIs holding assets worth in excess of $88 trillion, and it is estimated that around 1.2 million of these individuals will pass their wealth on in the next decade, representing around 87% of all individual wealth transfers by 2033. 

The report states that around 155,000 UHNWIs will pass on a cumulative $19.9 trillion. One in three UHNWIs has a net worth in excess of $100 million, representing vast wealth handovers. 

Great Wealth transfer by region 

The vast majority of wealth transfers in the next decade will be in North America, with 597,309 individuals collectively transferring estates worth a total of $14.1 billion, followed by Europe with 268,701 individuals transferring $7.437 billion, and Asia with 238,508 wealthy individuals passing over $6,081 billion. 

In total, North America and Europe account for 71% of global wealth transfers, which mirrors the fact that these areas are the traditional global wealth hubs.  

Smaller wealth transfers will be seen in Latin America and the Caribbean, with 45,113 individuals passing on a total of $1,288 billion; the Middle East, with 30,672 wealthy individuals passing on a total of $1,296 billion; and the Pacific region, with 27,374 individuals passing on a total of $524 billion. 

In all major wealth hubs, individuals with a net worth of more than $100 million will account for 40 to 50% of the total transferred wealth due to their vast fortunes. 

Wealth transfers by gender

According to the report, about 90% of the ultra-wealthy transferring wealth over the next decade will be male. This is in line with other wealth reports that consistently highlight that the vast majority of the world’s VHNW, UHNW, & billionaires are male. 

The beneficiaries 

Generation X will be the first in line to inherit, with the global average age of those inheriting hovering around the mid-to-late 40s. Millennials and younger Gen Z audiences are more likely to receive smaller funds as grandchildren. 

Luxury brands would be wise to start building relationships with Generation X by crafting marketing strategies that appeal to this younger cohort. While Millennials and Gen Z will likely receive smaller inheritances as part of this vast generational wealth transfer, they will still likely represent significant fortunes. 

A differing mindset 

At Relevance, we regularly conduct in-depth audience profiling to better understand the behaviours, habits, values, and lifestyles of the world’s richest audiences.

There is no question that the beneficiaries of this great wealth transfer, namely Generation X, but also millennials and Gen Z, have a very different mindset from their older, wealthy peers. 

The new, younger counterparts are more aware of and influenced by issues relating to technological change, social justice, healthcare, and the environment. They also have a more global outlook, with many having lived, worked or studied in more than one country. They are also more digitally savvy.  

Our research shows that they are also far more driven by experiences than consumerism, favouring authentic and immersive experiences that are bespoke to them. Our team has seen this first-hand in our work with the world’s leading superyacht brokerages and luxury travel brands. 

Finally, this younger cohort is likely to show a higher engagement level with philanthropy. 

How can Relevance help target the new VHNW & UHNW generation? 

Relevance is a leading marketing agency that specialises in working with luxury brands wishing to reach and engage with VHNW and UHNWIs. We offer a full suite of creative and digital services built on more than a decade of luxury marketing experience. Contact our team to learn how we can help accelerate your luxury brand. 

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