Which Five Countries Will Transfer The Largest Wealth In The Next 30 Years?

Wealth-X and NFP Report

Date: 08 Sep 2015 · 02:24

Foto: Frank Lindecke . ¿En qué 5 países habrá mayor transferencia de riqueza en los próximos 30 años?

Author: Fórmate a Fondo

Trillions of wealth will be transferred to the next generation globally: In the next 10 years, a total of $4.1 trillion. In the next 20, the amount will reach 9.2 trillion. And in 30 years time, it will exceed the $16 trillion figure

The United States, Germany, Japan, United Kingdom, and Brazil are the Top Five

North America’s UHNW population is older while in Europe, a large portion of wealth has already been transferred to the new generation

Asia´s UHNW population and wealth is expected to become the largest in the world in the next 20 years. But the wealth creation is this region is so recent that there is not a big need to transfer, yet

Half of the world’s UHNW individuals with assets of at least US$30 million are expected to pass on their wealth in the next 30 years.This means that at least $16 trillion of wealth will be transferred to the next generation globally, marking the largest wealth transfer in history: In the next 10 years, a total of $4.1 trillion. In the next 20, the amount will reach 9.2 trillion. And in 30 years time, it will exceed the $16 trillion figure.

Where will it happen? According to the Wealth-X and NFP Family Wealth Transfers Report, The United States, with an expectation of over $6 trillion transfer hits the top position. Germany and Japan, with over $1.6 trillion each, United Kingdom, with $830 billion, and Brazil, with $560 billion, complete the top five.

Enlarge

“North America’s $6,350 billion of wealth expected to be handed down in the next 30 years represents 40% of the global total. In terms of global UHNW wealth, North America holds 35% of the total; this slightly higher amount being passed down to the next generation reflects the fact that North America’s UHNW population is older”, the report explains.

In Europe, things are different since it already has a higher proportion of inherited wealth -45% compared to only 25% in North America-, meaning that a large portion of wealth has already been transferred to the new generation.

The firms expect Asia´s UHNW population and wealth to become the largest in the world in the next 20 years. But the wealth creation is this region is so recent that there is not a big need to transfer yet. “Whilst we expect Asia to be at the center of wealth creation in the coming decades, it will still take a long time for the impact of this to affect wealth transfers to the next generation in the region”, the report says.

If we take a look at the countries with largest expected wealth transfers as proportion of UHNW wealth in the next 30 Years, we find that Malaysia, Taiwan, France, Japan and Brazil lead the ranking. The explanation offered by the Wealth-X and NFP Family Wealth Transfers Report for the presence of three Asian countries in the top five –with over or almost 70% of their wealth to be transferred- is that “in each of these countries some of the wealthiest billionaires are already in their 70s or 80s, and this has a disproportionate impact on the whole country.”