For decades, wealth management has been dominated by financial intermediaries—agents of product companies who sit across the table from clients, selling investments and policies. But the next generation of investors is sending a clear message: they don’t want product pushers, they want professional allies.
A seismic shift is underway. Capgemini’s 2025 World Wealth Report finds that 81% of young inheritors plan to fire their parents’ advisors within one to two years of receiving their inheritance. With $83.5 trillion set to transfer globally by 2048, this isn’t a minor change—it’s an existential challenge to the old model of financial advice.
Why the Old Model Is Breaking Down
The regulatory perimeter protects financial intermediation—the business of distributing products under licence. Within this boundary, advisers are incentivised to chase assets under management, often seeking wealthy delegators who hand over control. This is misaligned with what the next generation actually wants:
- Alternative investments like private equity, crypto, and niche assets.
- Global diversification beyond London and New York into hubs such as Singapore, Hong Kong, UAE, and Saudi Arabia.
- Holistic services that blend wealth with lifestyle—travel, medical care, education, and cyber protection.
- Digital-first experiences where transparency, real-time access, and AI-enabled tools are standard.
Traditional firms are struggling to adapt. Nearly half of relationship managers are dissatisfied with their own firm’s digital capabilities, and many are nearing retirement. Clients are restless; advisors are frustrated. The cracks in the system are widening.
Financial Planning Beyond Products
Outside the regulatory perimeter lies a different practice: financial planning without intermediation. Here, planners don’t sell products—they empower clients. They are not agents of institutions; they are allies of individuals.
This approach resonates with younger investors because it reframes wealth as more than just financial capital. It is about aligning money with meaning, connecting financial decisions to life goals, and supporting clients through change and stress rather than locking them into contracts.
The role of the planner becomes one of guide, coach, and advocate—helping clients:
- Clarify their goals and values.
- Explore human and financial capital side by side.
- Build personalised cashflow strategies.
- Make informed, autonomous choices—without hidden conflicts.
The Evidence of Change
Capgemini’s research could not be clearer:
- 81% of heirs will switch advisors.
- 63% of Millennials and 49% of Gen Z want crypto and other niche investments.
- 65% of Millennials and 52% of Gen Z expect advanced digital tools.
- 62% of clients would follow their advisor if they moved firms—suggesting loyalty lies with people, not institutions.
This is not a client base looking for passive delegation. They are looking for empowerment.
A Human-Centred Roadmap
Gallup’s Four Levels of Engagement—Confidence, Integrity, Pride, Passion—offer a useful lens for understanding what clients are seeking:
- Confidence: Trust that their planner delivers what they promise.
- Integrity: Fair treatment and alignment to personal values.
- Pride: Services that make clients feel progressive and future-ready.
- Passion: A relationship so personalised they wouldn’t dream of switching.
This is the essence of planning outside the perimeter. It’s not about maximising AUM; it’s about maximising engagement and empowerment.
The Opportunity Ahead
The great wealth transfer is the defining moment for our profession. For intermediaries, it is a looming threat. For planners, it is an open door.
- Intermediaries: Risk losing 81% of the next generation if they remain product-centred.
- Planners outside the perimeter: Have the chance to become trusted allies, building lifelong relationships based on empowerment, not extraction.
The message is clear: the future of financial planning is not inside the walls of regulation and intermediation—it is beyond them. The planners who step outside will not just survive the great wealth transfer. They will lead it.
👉 If you’re ready to step outside the old model and become an empowering financial planner, join us at the Academy of Life Planning (AoLP).
We’ll equip you with the tools, community, and support to put life before money and stand on the client’s side of the table.
🔗 Contact AoLP today to start your journey.
Appendix: Gallup’s Four Levels of Customer Engagement
Gallup’s global research into customer engagement identifies four progressive levels that explain why some clients stay loyal for life while others leave after the first opportunity. These levels provide a framework for planners to understand and build lasting trust with the next generation of investors.
1. Confidence – “I trust you. You deliver what you promise.”
- Clients look for reliability and clarity.
- In practice: transparent fees, plain-language reports, and digital dashboards that make performance and planning clear.
2. Integrity – “You treat me fairly and with respect.”
- Clients want fairness and alignment to their values.
- In practice: including heirs early in family planning, avoiding conflicts of interest, and offering values-based strategies such as sustainability or impact investing.
3. Pride – “I feel proud to be your client.”
- Clients seek prestige and progressive positioning.
- In practice: services that go beyond money—global diversification, concierge support, philanthropy planning, or crypto literacy—making clients feel they are with a forward-thinking firm.
4. Passion – “I can’t imagine working with anyone else.”
- This is the highest level of engagement—where clients become loyal advocates.
- In practice: deep personalisation, life-first planning, and integration of financial choices with lifestyle, wellbeing, and legacy.
Why This Matters for Financial Planning
- Capgemini’s data shows 81% of heirs will leave their parents’ advisors. Gallup’s model shows why: low engagement and weak emotional connection.
- By contrast, planners working outside the regulatory perimeter can design client journeys that deliberately cultivate Confidence → Integrity → Pride → Passion.
- The result: instead of fighting to retain assets under management, planners create multi-generational relationships rooted in empowerment, not intermediation.
81% Of Young Millionaires Will Drop Parents’ Advisors, Capgemini Says
June 4, 2025 • Edward Hayes
Financial advisors worried about client retention amid the great wealth transfer are getting a bit of bad news from a recent study: A new wealth report released by Capgemini’s Research Institute found a significant number of inheritors are planning to leave their parents’ advisors within the next few years.
The firm’s annual “World Wealth Report” surveyed more than 6,400 high-net worth individuals, including 5,473 next-generation wealthy individuals across four regions: the Americas, Europe, the Asia-Pacific region and the Middle East. Of those surveyed, 81% of inheritors said they will switch advisors within a year or two of inheriting their parents’ fortune, Capgemini found.
The information technology consulting firm also found that wealth will be passed in three phases: 30% of wealthy individuals will receive their inheritance by the end of 2030; 63% will receive it by the end of 2035; and 84% will get it by 2040. The significant number of inheritors looking to switch advisors means those professionals must start rethinking their services, said Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit.
“The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents,” he said in a press release. “This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey.”
New investors are looking for specific services that advisors may not be used to offering. For instance, 63% of millennials and 49% of Gen Zers want more alternative investments and niche products such as cryptocurrency in their portfolios.
Many also want greater access to certain offshore emerging wealth hubs like Singapore, Hong Kong, the United Arab Emirates and Saudi Arabia. They also want more tailored services including luxury travel, medical care and protection against cyber-threats, the study said.
Finally, the younger clients want advisors to offer more advanced digital tools, with 65% of millennials and 52% of Gen Z saying they expect that from their wealth management firm.
“Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees,” Ramakrishnan said. (“Agentic AI” refers to systems that work autonomously.)
81% of Wealth Inheritors Say They’ll Fire Their Parents’ Advisor
NewsJune 12, 2025 at 02:09 PM
Wealth management firms are preparing for $83.5 trillion to change hands over the next two decades, creating the next generation of high-net-worth investors, according to Capgemini’s 2025 world wealth report.
This handover will unfold in three phases: 30% of beneficiaries will receive an inheritance by the end of 2030, 63% by the end of 2035 and 84% by 2040.
“The great wealth transfer will be a defining moment for the industry,” Kartik Ramakrishnan, head of Capgemini’s financial services strategic business unit, said in a statement. “Despite global wealth on the rise, 81% 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.”
Ramakrishnan noted that the next generation of wealthy individuals has vastly different expectations from their parents, and this requires firms to shift away from traditional strategies to effectively cater to their needs.
“Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees,” he said.
Capgemini found that a third of advisors were dissatisfied with their firms’ lack of digital capabilities, which they said negatively affects their productivity and creates a technological divide. In addition, 62% of next-gen investors said they would follow their advisor if they moved to a different firm.
Altogether, this directly affects retention, as advisors struggle to engage these digital-native clients, the report said.
Capgemini’s report covers 71 countries, accounting for more than 98% of gross national income and 99% of world stock market capitalization. It is based on three polls: a survey of 6,472 high-net-worth individuals, including 5,473 next-gen members across the Americas, Europe, and Asia/Pacific and Middle East; an executive survey that garnered 141 responses across 10 markets, with representation from pure wealth management firms, universal banks, independent broker-dealer and family offices; and a relationship manager survey, executed by Phronesis Partners, that received 1,306 responses across 12 markets.
To Better Serve Next-Gens
Capgemini’s report emphasizes that wealth management firms need to refresh and revamp their services and offerings to resonate with the next-gen customer base:
Private equity and cryptocurrencies: Nine in 10 advisors observe a greater interest in alternative assets among this group of investors compared with baby boomers.
New offshore booking centers: Half of advisors said their lack of capabilities in emerging wealth hubs — Singapore, Hong Kong, United Arab Emirates and Saudi Arabia — will drive these clients to other firms, as they seek diversification, better returns and a favorable regulatory environment.
Tailored services: Next-gen investors rank concierge services among the ones they most want in their wealth management firm, such as luxury travel, medical care and safeguarding against cyber threats.
Digital interactions: Advisors rank a digital platform that provides a holistic client view and actionable insights as the most important capability to effectively serve next-gen high-net-worth individuals, followed by intelligent automation of operational tasks like meeting summaries and emails.
HNW Population Growth
The global population of high-net-worth individuals — those with investable assets of $1 million or more, excluding their primary residence, collectibles, consumables and consumer durables — rose by 2.6% in 2024, according to the research. This increase was driven by 6.2% growth in the population of ultra-wealthy individuals — those with $30 million or more of investable assets — as strong stock markets and artificial intelligence optimism boosted portfolio returns.
North America saw the biggest gains, with the high-net-worth population rising by 7.3% against a backdrop of favorable interest rates and strong U.S. equity market returns.
Asia/Pacific’s wealthy population increased by a more modest 2.7%, albeit with notable variability across the region: Japan and India both registered 5.6% growth, while China’s wealth sector fell by 1%.
In contrast, Europe’s high-net-worth population declined by 2.1% because of economic stagnation in major countries; the Middle East’s also by 2.1%, driven by lower oil prices; and Latin America’s by 8.5% because of currency depreciation and fiscal instability.
Here’s a client-ready summary and essence of the two articles and the supporting Capgemini World Wealth Report 2025.
The Great Wealth Transfer: What Financial Planners Need to Know
Key Findings
- 81% of young inheritors (Gen X, Millennials, Gen Z) plan to switch their parents’ advisor within 1–2 years of receiving an inheritance .
- A massive $83.5 trillion will transfer hands globally by 2048, with most inheritances occurring in three waves:
- 30% by 2030
- 63% by 2035
- 84% by 2040
- This will be one of the most disruptive shifts ever seen in wealth management.
Why Next-Gen Clients Are Different
Next-generation High Net Worth Individuals (HNWIs) have very different priorities from their parents:
- Alternative Investments
- Strong demand for private equity, cryptocurrency, and other niche assets.
- 88% of relationship managers confirm younger clients want alternatives more than baby boomers .
- Global Diversification
- High interest in emerging wealth hubs such as Singapore, Hong Kong, UAE, and Saudi Arabia, in addition to traditional centers like London, New York, and Switzerland .
- Lifestyle & Concierge Services
- Demand goes beyond portfolio returns: luxury travel, medical care, cybersecurity, and education planning are increasingly expected as part of the service offering .
- Digital Expectations
- Digital-first, omnichannel engagement is critical:
- 65% of Millennials and 52% of Gen Z want advanced digital platforms from their advisors .
- Video calls and real-time portfolio access are top preferences.
- Digital-first, omnichannel engagement is critical:
The Risk for Advisors
- Client Attrition: Losing heirs could mean losing decades of future assets under management.
- Advisor Retention: 47% of advisors are dissatisfied with their firm’s digital tools, which may push them to leave — and 62% of clients would follow their advisor to another firm .
- Talent Crisis: Nearly half of today’s relationship managers are expected to retire by 2040, adding urgency to succession planning inside advisory practices .
The Opportunity
Advisors who act now can capture enormous opportunities by:
- Tailoring investment strategies to include alternatives and values-based options.
- Expanding global capabilities to access both traditional and emerging wealth hubs.
- Building holistic services that integrate wealth, lifestyle, and wellbeing.
- Upgrading digital engagement with AI-enabled, seamless, and secure tools.
- Educating heirs early, helping families prepare for wealth transfer in ways that build trust across generations.
Essence
The World Wealth Report 2025 sends a clear message:
The great wealth transfer will either be the greatest threat or the greatest opportunity for financial planners.
Advisors who modernize — offering digital, global, and holistic value — will not only keep assets but also attract a new generation of clients. Those who don’t risk losing up to 81% of their future high-net-worth business.
The Great Wealth Transfer: What It Means for Financial Planners
The Scale of Change
- $83.5 trillion to be transferred globally by 2048
- Phases of inheritance:
- 30% by 2030
- 63% by 2035
- 84% by 2040
- 81% of heirs say they will change their parents’ advisor within 1–2 years
The Next-Gen Client Priorities
- Alternative Investments
- Private equity, crypto, and niche assets
- 88% of advisors confirm younger clients are more interested than baby boomers
- Global Diversification
- Beyond London & New York: rising hubs include Singapore, Hong Kong, UAE, Saudi Arabia
- Lifestyle & Concierge Services
- Demand for luxury travel, medical care, education planning, and cybersecurity
- Digital Engagement
- 65% of Millennials & 52% of Gen Z want advanced digital tools
- Prefer video calls and real-time portfolio access
The Risks
- Client Attrition: 81% likely to leave if not engaged early
- Advisor Attrition: 47% of advisors dissatisfied with digital tools; 62% of clients would follow if their advisor moved firms
- Talent Crisis: 48% of current relationship managers will retire by 2040
The Opportunity for Advisors
Evolve investment strategies → include alternatives and values-based options
Expand global capabilities → offer access to emerging wealth hubs
Deliver holistic value → estate planning, lifestyle services, philanthropy
Upgrade digital engagement → AI tools, seamless omnichannel experience
Engage heirs early → education and cross-generational planning
Essence
The World Wealth Report 2025 is clear:
Advisors who modernize today will capture tomorrow’s clients.
Fail to adapt — and risk losing the next generation of wealth.
The Gallup 4 Levels of Customer Engagement (Confidence, Integrity, Pride, Passion) can act as a practical solution to the retention challenge outlined in the Capgemini research.
Using Gallup’s 4 Levels of Engagement to Win the Great Wealth Transfer
Why This Matters
Capgemini shows that 81% of next-gen heirs will leave their parents’ advisors.
The root cause: low engagement. Younger clients want digital access, alternatives, global options, and lifestyle services—but more than that, they want a trusted emotional connection.
This is exactly where the Gallup 4 Levels of Engagement comes in.
How the 4 Levels Solve the Challenge
- Confidence – “I trust you, you deliver what you promise.”
- Next-gen clients expect reliability, transparency, and clarity.
- Solution: Advisors must use plain-language digital tools (e.g., dashboards, Asset-Map visuals) to show heirs they can rely on advice that’s clear and consistent.
- Integrity – “You treat me fairly and with respect.”
- Many heirs leave because they feel “overlooked” or “underserved.”
- Solution: Advisors must include heirs early in family planning conversations, demonstrate fairness in fees, and align recommendations to the heir’s values (sustainability, impact investing).
- Pride – “I feel proud to be your client.”
- Next-gen HNWIs want prestige, experiences, and tailored services.
- Solution: Position the practice as a progressive, modern wealth partner (concierge services, global access, crypto literacy), making clients proud to associate with the firm.
- Passion – “I can’t imagine working with anyone else.”
- This is the loyalty factor that stops clients from switching firms.
- Solution: Deeply personalize the journey—know their goals, values, lifestyle aspirations—and use digital + human touch to make engagement effortless and inspiring.
How Financial Planners Can Implement the Strategy
Step 1: Audit Your Client Journey
- Map your touchpoints (meetings, reviews, digital updates).
- Rate each step against the 4 levels: Does this build Confidence, Integrity, Pride, or Passion?
Step 2: Engage the Next Generation Now
- Invite heirs into review meetings early.
- Run Next-Gen financial education sessions.
- Offer “Future Wealth Conversations” that include lifestyle, digital assets, and legacy planning.
Step 3: Upgrade Digital & Personal Touch
- Provide dashboards, secure portals, and video-first engagement.
- Automate routine tasks (AI-generated meeting summaries, updates).
- Free up time for more personal, high-value conversations.
Step 4: Expand Value Beyond Investments
- Concierge services (travel, medical, education planning).
- Estate planning with digital inheritance and cross-border trust solutions.
- Philanthropy, purpose-driven investing, and legacy conversations.
Step 5: Measure Engagement, Not Just AUM
- Use short engagement surveys aligned to the 4 levels.
- Track whether clients are moving from Confidence → Integrity → Pride → Passion.
- Set a practice goal: “100% of clients fully engaged by 2030.”
Essence
The Gallup 4 Levels framework gives financial planners a structured, human-centered roadmap to retain heirs during the great wealth transfer.
By building Confidence, Integrity, Pride, and Passion, advisors transform from “their parents’ advisor” into the family’s lifelong trusted partner.
The Great Wealth Transfer & Gallup’s 4 Levels of Engagement
How financial planners can retain heirs who are ready to leave their parents’ advisor
The Challenge vs. The Solution
| Capgemini: Why 81% of heirs switch advisors | Gallup 4 Levels of Engagement: How to Retain Them |
| Digital Gaps – 46% say services not available on preferred digital channels | Confidence → Build trust with modern, transparent digital tools (dashboards, portals, video-first meetings). Show heirs you deliver consistently. |
| Lack of Alternatives – 33% want private equity, crypto, niche assets not offered by their parents’ advisors | Integrity → Prove fairness by listening and adapting to their priorities. Introduce responsible alternatives and impact investing that align with their values. |
| Limited Value-Added Services – 25% want lifestyle, medical, concierge, and global access | Pride → Make clients proud to work with you by offering progressive, holistic services (concierge, global diversification, philanthropy planning). Position your firm as forward-looking. |
| Weak Emotional Connection – Heirs don’t feel loyalty to “their parents’ advisor” | Passion → Personalize the relationship. Include heirs early, run education sessions, and focus on purpose, legacy, and lifestyle—so they can’t imagine working with anyone else. |
How to Implement
- Audit Your Client Journey → Map each touchpoint against the 4 levels.
- Engage Heirs Early → Invite them into review meetings and offer next-gen learning sessions.
- Upgrade Digital → Use AI, automation, and video-first strategies to enhance engagement.
- Expand Beyond Investments → Deliver estate planning, philanthropy, lifestyle, and digital asset services.
- Measure Engagement → Track if clients are moving up from Confidence → Passion.
Essence
Capgemini warns of risk. Gallup provides the roadmap.
By applying the 4 Levels of Engagement, financial planners can transform the greatest threat of client loss into the greatest opportunity for multi-generational loyalty.
👉 If you’re ready to step outside the old model and become an empowering financial planner, join us at the Academy of Life Planning (AoLP).
We’ll equip you with the tools, community, and support to put life before money and stand on the client’s side of the table.
🔗 Contact AoLP today to start your journey.
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