The world's richest individuals are set to transfer an astounding $31 trillion to their heirs over the next 10 years, according to the latest report by data firm Altrata. This massive transfer of wealth will be carried out by more than 1.2 million people with assets exceeding $5 million each. Here are the key highlights of the upcoming global wealth transfer:
Wealth Transfer Overview:
With nearly 4.4 million individuals worldwide holding over $88 trillion in assets, over a quarter of the world's wealthiest are expected to pass on their fortunes in the next decade. The majority of wealth transfers, 87%, will be conducted by 'very high net worth' individuals with fortunes between $5 million and $30 million, while the ultra-wealthy with over $30 million will account for the remaining 13% of transfers.
Billionaire Impact:
A total of 1,380 billionaires are projected to redistribute their wealth, contributing almost $5 trillion to the global transfer. Despite making up only 0.1% of total transfers, billionaires will play a significant role in shaping the future wealth distribution.
Generational Shift:
Interestingly, Gen X members are poised to inherit the most from their wealthy parents, leaving millennials and Gen Z to receive smaller sums from their grandparents. The upcoming inheritors are expected to focus on social issues such as the environment and healthcare, showcasing a trend towards charitable giving and community involvement.
In conclusion, the next decade will witness a monumental shift in wealth distribution, with a new generation of inheritors bringing a fresh perspective and emphasis on social responsibility and philanthropy.