Growth of the high-net-worth individual population in the United States and the wealth they control have reached all-time highs, maintaining our status as the largest HNWI market in the world, according to the U.S. Wealth Report 2015 released in December by consulting firm Capgemini Financial Services.
In 2014, the number of HNWIs in the U.S. — HNWIs are considered people who have more than $1 million to invest — grew 8.6 percent to 4.4 million. Their combined investable wealth increased to $15.2 trillion, up 9.4 percent from the previous year.
For wealth advisors, that’s good news. The bad news? A new and younger generation of clients are coming, and that is presenting a challenge to the industry.
From Capgemini: “Despite robust growth in U.S. wealth, the preferences and behaviors of younger and wealthier HNWIs are continuing to challenge the traditional relationship between HNWIs and the wealth management firms that serve them.”
The younger generation are also less “sticky,” meaning they are more likely to leave an advisor if they aren’t happy.
“Under-30 HNWIs have lower levels of trust, loyalty and satisfaction, and are more likely to have relationships with many wealth management firms,” Capgemini concluded.