NEW YORK and SINGAPORE, Jan. 13, 2015 /PRNewswire/ -- At least US$16 trillion of global ultra high net worth (UHNW) wealth will be transferred to the next generation over the next 30 years, according to the Wealth-X and NFP Family Wealth Transfers Report. This will be the largest wealth transfer in history, creating a new crop of ultra wealthy individuals.
The findings in the Wealth-X and NFP report released today underscore the importance of early planning to ensure the successful transmission of assets and values from the benefactor to its beneficiaries.
Below are other key highlights from the report:
- The majority of those passing on their wealth are self-made individuals.
- The United States will see the greatest amount of wealth transfers, with US$6 trillion set to change hands in the next 30 years — amounting to nearly 40 percent of the global total.
- Forty-three percent of Asia's UHNW wealth (US$3 trillion) will be transferred.
- Nearly US$5 trillion in liquid assets will change hands.
- Philanthropic bequests will also form part of this upcoming wealth transfer, with US$300 billion in charitable donations expected.
- Private holdings form the largest component of the net worth of UHNW individuals set to transfer their wealth, with US$6 trillion of UHNW wealth currently held in private companies.
- Wealth rises with age, and UHNW individuals who are 80 years old or above are on average five times wealthier than those under 40.
Wealth-X President David Friedman commented: "The Wealth-X and NFP Family Wealth Transfers Report highlights what will be the largest wealth transfer in history from one generation to the next. Expert commentary from NFP on how to leverage structures like life insurance to optimize such transfers complements Wealth-X's global intelligence on the world's UHNW population, most of which is privately held, producing a study that is unique, valuable and essential to those who would like to understand and engage this momentous transfer of ultra affluent wealth."
Bryan Schick, President of NFP International, added: "With US$16 trillion passing to the next generation over the next 30 years, the enduring legacies of many families will soon be defined. Expert guidance from qualified global advisors will be paramount in assisting the ultra high net worth in navigating complex planning challenges and executing an efficient transfer of wealth and values."
Wealth-X is the world's leading ultra high net worth (UHNW) intelligence and prospecting firm with the largest collection of curated research on UHNW individuals, defined as those with net assets of US$30 million and above. Headquartered in Singapore, it has 13 offices on five continents. (www.wealthx.com)
For press queries, contact Fauzi Ahmad at +65-86536514 or [email protected].
National Financial Partners Corp. (NFP), along with its benefits, property & casualty and life insurance, and wealth management businesses, provides diversified advisory and brokerage services to companies and high net worth individuals.
NFP operates in three business segments. The Corporate Client Group provides corporate and executive benefits, property and casualty insurance, and retirement plans. The Individual Client Group provides retail and wholesale life insurance brokerage and wealth management advisory services. Advisor Services Group supports independent financial advisors by offering broker/dealer and asset management products and services.
Most recently, NFP was ranked by Business Insurance as the 5th-largest benefits broker by global revenue, 4th-largest U.S.-based privately owned broker and 11th-largest broker of U.S. business. Plan Sponsor has named NFP the fifth-largest executive benefits provider of nonqualified deferred compensation plans by number of plans. The company also operates a top 10 independent broker/dealer as ranked by WealthManagement.com. (www.nfp.com)
NFP International is a division of NFP Insurance Services, Inc., a U.S.-domiciled company providing life insurance, benefits, and property and casualty insurance products and services to individuals and corporations through its network of licensed agents. NFP Insurance Services, Inc. is a subsidiary of National Financial Partners Corp. Offshore insurance products are offered through NFP (BVI) Ltd., a subsidiary of NFP Insurance Services, Inc., and are for non-U.S. residents only.
For press queries, contact Gregory FCA for NFP at 610-228-2104 or [email protected]