The world’s ultra-wealthy continue to grow in number and influence. By June, there were over 510,000 individuals worth at least $30 million—a 5.4% increase since January—according to wealth intelligence firm Altrata.
Currently, millennials and Generation Z make up just 8% of this elite group, while baby boomers command 45% and those born before 1945 represent 22%. But that balance is set to shift dramatically in the coming decades.
The great wealth transfer
Altrata predicts that by 2040, millennials and Gen Z will account for more than a third of ultra-wealthy individuals. Meanwhile, baby boomers and the silent generation will see their share fall to around 20%, with Generation X taking the lead at 45%.
“This isn’t far off,” said Maya Imberg, head of thought leadership at Altrata. “Businesses need to anticipate how younger wealth holders will approach spending, investments, and luxury goods.”
Wealth comes earlier
Part of this shift is driven by the increasing use of trusts and family offices, which allow heirs to access wealth earlier.
“Younger generations don’t have to wait for inheritance—they can leverage family wealth while building their own ventures,” noted Maeen Shaban, Altrata’s director of research.
Different industries, different priorities
A major distinction between generations lies in the sectors creating their wealth. For millennials and Gen Z, hospitality, entertainment, and technology are key drivers, while baby boomers are more heavily represented in banking and finance.
Nearly 15% of the youngest ultra-rich made their fortunes in hospitality and entertainment, compared with less than 5% of older generations. Technology accounts for roughly 9% of younger wealth, double that of baby boomers.
Spending patterns and lifestyle choices
Younger ultra-wealthy individuals also differ in how they allocate their resources. With a median wealth of $44 million—compared to $57 million for baby boomers—real estate often forms a larger portion of their portfolios.
Unlike older generations who may downsize, millennials and Gen Z are in acquisition mode, investing in first homes, vacation properties, and luxury goods.
Philanthropy ranks lower for the next generation, partly because their businesses tend to be less liquid, leaving them less time and capital to give.
Implications for business
These generational changes have far-reaching implications for industries that serve the ultra-rich—from wealth management and luxury brands to art dealers and nonprofits.
Understanding the preferences and values of this emerging cohort will be critical for firms hoping to remain relevant in the coming decades.
“The ultra-rich of tomorrow won’t be the same as today,” Imberg said. “Their choices will redefine markets and the very notion of luxury itself.”
