Next generation: Redefining the purpose of wealth
The new cohort of high-net-worth individuals recognises that there are many pathways to impact and is acting through all their activities
AS THE world braces for an unprecedented intergenerational wealth transfer – more than US$83 trillion by 2050 – the financial landscape is undergoing a seismic shift.
In Singapore, about US$23 billion – an amount equivalent to 6 per cent of the Singapore foreign reserves as at end 2024 – is expected to change hands, according to UBS’ Global Wealth Report 2025.
At the heart of this transformation is a new cohort of high-net-worth individuals (HNWIs): Gen X (born between 1965 and 1980), millennials, and Gen Z (1997 to 2012).
Based on 2025 Financial Times Longitude research, many millennial and Gen Z HNWIs globally have received inheritance directly from their grandparents at a much younger age than previous cohorts.
These next-generation clients are not only inheriting wealth – they are redefining what it means to manage, grow and use it with purpose to create impact for good.
Unlike their predecessors, next-generation HNWIs are driven by values that extend far beyond financial returns. They recognise that there are many pathways to impact and are acting through all their activities – philanthropy, investing and business.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The alignment of financial goals with personal values has become increasingly significant for younger HNWIs. They are not just focused on preserving and growing their wealth; they are also intent on ensuring that their legacy contributes positively to society and the environment.
This rising trend of impact investing among the young is evident in the changing investment preferences of family offices in Asia-Pacific.
Philanthropy and charitable giving appear to be especially popular in our region; 45 per cent of family offices that UBS said they currently take it into account and are more likely to focus on impact investing.
Globally connected, mobile and tech-savvy, this new generation of clients is also seeking a tailored approach to their wealth. They expect a seamless, intuitive, omnichannel experience.
Growing up in multicultural environments, global diversification is important and comes more naturally to this group of HNWIs than their predecessors.
The next-generation HNWIs also showed more interest in offshore investments.
Already an Apac financial hub, Singapore has emerged as one of the key wealth destinations especially for those from North America and Middle East, which bodes well for the Republic’s future as a global wealth management hub.
These preferences reflect a generation that views wealth not just as capital, but also as a tool for shaping their lives and the world around them.
Empowering through education and experience
The reality today is that over half of inheriting billionaires pursue careers outside the family business, according to the 2023 UBS Billionaire Ambitions Report, and they want support for their broader life goals. The same applies for the HNWIs, who want help to define their own path.
We have been advising multi-generational families for more than 160 years. While every generation faces distinct challenges, the leaders of each era are defined by shared traits such as innovation and a readiness to take calculated risks.
Hence, the programmes and services targeted at the next generation are often designed to support individuals in their transition which include decision-making for investments and business ventures, communication and leadership skills, as well as modules on sustainability, artificial intelligence (AI) and personal legacy.
Institutionalising the family business and wealth, with a key focus on inculcating the entrepreneurial spirit among the younger generations, is also top of mind for parents or grandparents who helmed family-owned businesses.
While uncommon in Asia, some programmes in Europe and US bring together key family members across generations to shape the future of their family and business with facilitation by independent family advisory experts. In the past 20-plus years, we have educated more than 1,700 members of next-generation wealth holders in over 75 different countries.
Having a global network of like-minded peers gives them a safe space to learn, share ideas, support personal growth and at times, co-create and contribute to a common cause.
Cultivating the next generation for a people-first business
Wealth management must adapt to meet the evolving expectations of next-generation clients.
While technology is an enabler, especially around hyper-personalisation, it is still a high-touch people’s business at heart. A Capgemini survey found that 62 per cent of next-generation clients said they would switch firms to be with advisers who understand them.
Investing in talent development to address wealth transition needs is crucial.
To date, we have trained more than 350 bankers in Singapore and Hong Kong on sustainable finance and responsible investing through partnerships with the Center for Sustainable Finance and Private Wealth, while also advancing its innovation agenda with the launch of its first regional AI and Transformation Factory in Singapore last year.
The factory aims to develop prototypes for Apac and support internal and external educational programmes to equip employees and leaders with the skills to thrive in an AI-enabled institution.
Beyond technical skills, soft skills are just as important for client advisers. These comprise the ability to understand communication dynamics across generations and to manage family conflicts and difficult conversations.
According to the 2025 UBS Own Your Worth report, nearly a third of the women who inherited assets from their parents had no prior conversations with them about the wealth transfer. As a result, 80 per cent of female inheritors faced challenges in navigating the process.
While it is a tough topic to broach with senior clients, it is a more holistic approach that puts the client at the centre of what we do.
The future of wealth management lies in understanding and serving the evolving needs of next-generation HNWIs. Successful wealth transfer and family transitions require education, experience, and support – not just for the next generation, but equally for client advisers and parents.
As next-generation successors come to the fore, we help them turn inheritance into impact, and legacy into leadership, even as we continue to focus on developing our own next-generation advisory talent.
The writer is head of wealth management, UBS Singapore
Copyright SPH Media. All rights reserved.
