Unprecedented Wealth Transfer: Over 1,000 Billionaires to Pass Down $5.2 Trillion in Next Decades
An extraordinary wealth transfer is on the horizon, as the UBS Billionaire 2023 report reveals that more than 1,000 billionaires aged 70 or older are poised to hand down a staggering $5.2 trillion to their heirs in the coming two to three decades. This anticipated transfer underscores the advanced age of the current billionaire cohort and is rooted in the prosperity generated by entrepreneurial activities since the 1990s.
Key Points:
- Unprecedented Wealth Transfer:
- Over the next 20 to 30 years, the UBS report predicts that more than 1,000 billionaires, currently aged 70 or older, will transfer an extraordinary $5.2 trillion to their heirs. This projection is based on the aggregation of wealth within this specific age group.
- Current State of Billionaire Wealth:
- The report notes that despite the recovery in billionaire wealth during the 2022/2023 period, the community remains smaller than its peak in 2021. The total number of billionaires globally increased by 7%, reaching 2,544, with combined wealth rebounding by 9% from $11.0 trillion to $12.0 trillion.
- Recovery in Europe’s Consumer and Retail Sector:
- The billionaire community experienced a partial recovery in wealth, driven in part by the resurgence in Europe’s Consumer and Retail billionaires. After a nearly 20% decline in the previous 12 months, both the number of billionaires and their combined wealth rebounded.
- EMEA Region’s Strongest Showing:
- The UBS report highlights the exceptional performance of the EMEA (Europe, Middle East, and Africa) region, marking its strongest showing in the nine editions of the study. Fueled by a post-pandemic shopping surge in 2022, France’s luxury goods and cosmetics companies contributed to a 21% increase in total wealth, reaching $3.2 trillion, and a 10% growth in the number of billionaires.
- UAE’s Notable Wealth Jump:
- In the Middle East, the United Arab Emirates (UAE) stood out with a significant jump in wealth, expanding by 157% from $38.7 billion to $99.4 billion. The UAE became the home to more billionaire wealth than any other country in the region, experiencing a sharp economic rebound in 2022 with a 7.6% GDP expansion.
Conclusion: The UBS Billionaire 2023 report sheds light on an impending historic wealth transfer, with over 1,000 billionaires passing down a colossal $5.2 trillion to their heirs. Despite fluctuations in billionaire wealth, regions like EMEA, driven by post-pandemic economic activities, showcase remarkable growth. This anticipated wealth transfer emphasizes the evolving landscape of global wealth distribution and the impact of entrepreneurial success on future generations within billionaire families.
