On Wednesday 4 June 2025, the Capgemini Research Institute released the 29th edition of its World Wealth Report, showing a decline in the number of high-net-worth individuals (HNWIs) in Luxembourg.

The report revealed that, worldwide, the overall wealth of HNWIs had increased by 4.2% in 2024,. However, in Luxembourg, HNWIs’ wealth had declined by 5.7% and Luxembourg’s HNWI population had decreased from 47.10 HNWIs in 2023 to 43.60 HNWIs, representing a 7.5% decrease.

According to Capgemini’s research:

• Europe’s HNWI population declined 2.1% due to economic stagnation in major countries, with United Kingdom, 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;

• Asia-Pacific’s HNWI population increased 2.7%, with notable variability across the region;

• 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;

• The Middle East’s HNWI population declined 2.1%, driven by lower oil prices.

The report detailed that the United States (US) led the world in growth in its millionaire population, adding 562,000 to reach 7.9 million, the ultra-high net worth individual population rose by 6.2% worldwide and HNWIs now allocate 15% of their portfolios to alternative investments, including cryptocurrencies.

The report stated: “A favourable interest rate environment and strong US 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.”

Capgemini also highlighted the transfer of wealth to the next generation of HNWIs, signalling significant changes for the wealth management sector in the next ten years. Their report noted that $83.5 trillion will change hands over the next two decades, creating the next generation of HNWIs. According to the report, this handover will unfold in three phases, where 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.

“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,” said Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member. 

He added: “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 artificial intelligence, to mitigate the risk of losing both clients and key employees.”

To attract next-gen HNWIs, Capgemini advised that wealth management firms need to refresh and revamp their services and offerings to resonate with the next-generation HNWI customer base. These included:

• private equity and cryptocurrencies: 88% of advisors observe a greater interest in alternative assets amongst this group of investors over baby boomers;

• new offshore booking centres: 50% of advisors indicate their lack of capabilities in emerging wealth hubs – Singapore, Hong Kong, UAE and Saudi Arabia – will drive these clients to alternate firms, as they seek diversification, better returns and a favourable regulatory environment;

• tailored services: concierge services such as luxury travel, medical care and safeguarding against cyber threats, rank as the top non-financial value-added services most sought after;

• digital interactions: advisors rank a digital platform providing a holistic client view and actionable insights as the most important capability to effectively serve next-gen HNWIs, followed by intelligent automation of operational tasks like meeting summaries and emails.