Wealth managers must get ready for the great wealth transfer
With the UK on the verge of a historic great wealth transfer, wealth managers must get ahead now, writes Rhodri Preece
Over the weekend, The Sunday Times Rich List was published and showed, yet again, that the UK’s richest people are truly a motley crew. The inaugural Sunday Times Rich List was published in 1989, when the number one spot was occupied by the late HM Queen Elizabeth II. By 2015, she didn’t even feature in the top 300.
Over the past few decades, the number of billionaires in the UK has risen significantly, and their collective wealth has soared. The UK’s richest have seen a substantial rise, with the 200 wealthiest families’ wealth increasing from £42bn to £711bn. The number of billionaires has also exploded, from 15 in 1990 to 177 by 2022. From music and media, gambling and gas, 2025’s list shows that many that make the list work in increasingly varied industries, as new technologies and markets open routes to billionaire status.
But as Britain’s wealthiest become more diverse, what does that mean for the future of the wealth management industry?
How should wealth managers adjust?
Well, first wealth managers should prepare themselves for seismic shifts in the generations. The UK stands on the verge of a historic ‘great wealth transfer’, with Baby Boomers set to pass assets down to Gen X, Millennials and Gen Z individuals. According to Wealth-X, this transfer will amount to $18.3 trillion globally by 2030, including $3.6 trillion in Europe. This shift presents both an opportunity and a challenge for wealth managers. Inherited wealth can erode as it passes down through the generations, often because heirs do not have a strong connection with their parents’ financial advisers and lack the financial acumen to manage their inheritances. If wealth managers fail to adapt, they risk seeing assets walk out the door.
Secondly, new technologies are set to change how business is done.
Artificial intelligence (AI) is reshaping how wealth managers operate and serve clients, unlocking new levels of efficiency, insight and personalisation. According to Deloitte, three-quarters of leading financial firms plan to invest heavily in AI by 2026, clear evidence that the revolution is well underway.
Clients will want benefits of AI
Historically, wealth management has revolved around personal relationships and human expertise. Today, those human elements remain just as crucial – but increasingly, they are being augmented by AI tools to enhance the client service and value proposition. For UK financial advisors and wealth managers, adopting AI is becoming essential to retaining and attracting clients. Investor expectations, competitive pressures and regulatory scrutiny are increasingly converging, giving advisors that embrace AI-driven tools a fundamental edge.
Regulators have begun setting guiding principles for AI – like safety, transparency and fairness – and will hold firms accountable to these standards. In practice, wealth managers must apply the same rigor to AI as to any other part of their business: with robust controls, testing for bias and clear human accountability for algorithmic decisions. By embracing innovation within these guardrails, firms can satisfy compliance requirements and confidently reap AI’s benefits.
The next few years will be marked by great change, both technological and societal. For the wealth management industry this transformation can be a positive force if guided by integrity and transparency.
The shape of wealth in Britain is changing – who has wealth, how they got their wealth and their expectations for how it should be managed. The UK wealth managers who seize the AI opportunity now and manage its risks responsibly will position themselves to thrive in the years ahead. As ever, those who resist innovation do so at their peril, while those who embrace it can truly elevate their practice.
Rhodri Preece is senior head of research at CFA Institute