Global HNWI Population Up 2.6% in 2024

The global high-net-worth individuals (HNWIs)population rose by 2.6% in 2024 and this increase was driven by the growth in the population of ultra-high-net-worth individuals (UHNWIs), which grew by 6.2%, as strong stock markets and AI optimism boosted portfolio returns.

According to the 29^th edition of the Capgemini Research Institute’s World Wealth Report 2025, which was released on Wednesday, bullish stock market performance in the US fuelled wealth increase.

The data also indicated that alternative investments, such as private equity and cryptocurrencies, have now an established presence in HNWI holdings, representing 15% of their portfolios, the report said.

A favourable interest rate environment and strong U.S. equity market returns helped boost wealth creation in 2024. North America saw the biggest gains, with the HNWI population rising by 7.3%. In contrast, Europe, Latin America and the Middle East saw declines in their HNWI populations, as macroeconomic challenges weighed.

The report said that at the end of 2024, Europe’s HNWI population declined 2.1% due to economic stagnation in major countries, with the UK, France and Germany losing 14,000, 21,000 and 41,000 millionaires, respectively. In contrast, Europe’s UHNWI population rose 3.5%, reflecting increased wealth concentration.

The Asia-Pacific’s HNWI population increased 2.7%, with notable variability across the region, while Latin America’s HNWI population declined 8.5%, due to currency depreciation and fiscal instability. Brazil (-13.3%) and Mexico (-13.5%) witnessed the biggest population declines and lower oil prices has resulted in the Middle East’s HNWI population decline by 2.1%.

Within the largest individual markets, the US was the clear leader, adding 562,000 millionaires as the country’s HNWI population grew by 7.6% to 7.9 million. India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6% growth, adding 20,000 and 210,000 millionaires, respectively. In contrast, growth in China was negative, with HNWI population declining by 1%.

Role of Wealth Management Firms

Wealth management firms are actively preparing for a new era of wealth transfer in which $83.5 trillion will change hands over the next two decades, creating the next generation of HNWIs. This this handover will unfold in three phases – 30% of HNWIs will receive an inheritance by the end of 2030, 63% will inherit wealth by the end of 2035, and 84% by 2040.

Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member, said that the great wealth transfer will be a defining moment for the industry.

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, he said.

“The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents. This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey. 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 added.

As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies. They are willing to take more risks to expand their wealth – allocating capital to higher growth asset classes and niche product offerings, notably by 61% of millennial and Gen Z HNWIs.

Risk Factors

According to the report, one-in-three advisors express dissatisfaction with their firms’ lack of digital capabilities, negatively impacting their productivity, and creating a technological divide. In addition, 62% of next-gen HNWIs say they would follow their advisor if they moved to a different firm. Altogether, this directly impacts retention, as advisors struggle to engage these digital-native clients.

Beyond digital resources, the industry is on the cusp of a talent shortage amid an unprecedented transfer of wealth to Gen X, millennial, and Gen Z inheritors.

In the next 12 months, one in four advisors plan to be on the move, with a majority transitioning to a competitor firm and a few starting their own ventures. Additionally, 20% of advisors say they will retire by 2035, with 48% planning to retire by 2040.