It is unsurprising there's so much focus on Next-Gen wealth transfer when so many assets are held by those aged 60 or over.

High net worth investors are more likely to be aged 60 or more than is the case for the general population. Perhaps this illustrates how wealth accumulates over time and explains why intergenerational transfer is such a major topic, a study shows. The report, by GlobalData, an analytics and data firm, also stirs controversy over just how much wealth is due to be transferred as the Baby Boomer generation fades away.

Some 38 per cent of HNW investors are above the age of 60, compared with less than 14 per cent of the global population, according to GlobalData. It said 19.8 per cent of global HNW wealth will change hands over the next 10 years, equating to $8.6 trillion. Given that 28.3 per cent of HNW clients’ children discontinue the relationship with their parents’ wealth manager upon inheriting, GlobalData predicts that $2.4 trillion of HNW wealth will move from one competitor to another as inheritors look for a provider better suited to their needs.

The findings come from the report called Intergenerational Wealth Transfer: Seizing the HNW Opportunity.

“Ultimately providers need to find the balance between effectively serving their existing client base and developing an image that resonates with a younger clientele,” Heike van den Hoevel, senior wealth analyst for GlobalData, said. “This means intergenerational wealth transfer in the HNW space will be a big source of new business over the coming years.”

(Editor’s note: There appears to be little agreement on the approximate size of wealth due to change hands in the next few years as Baby Boomers hand over. One regularly-cited figure is that in North America alone, about $30 trillion is due to change hands. Much of that may be in the form of illiquid assets, business assets, etc, rather than hard cash. In any event, the figures are very large and explain why the wealth industry is constantly urged to pay heed to what the “Next Gen” wants. It is a shame, however, that there is such a massive range of estimates of wealth to be transferred - perhaps this should encourage healthy skepticism about all such figures?)