All About Estates

The High Net Wealth Segment

In this Blog I will share some statistics about the High Net Wealth (“HNW”) segment and global trends as they relate to Estate planning and administration.
For the purposes of this article a “HNWI” is a High Net Wealth Individual having investible assets of $1 million or more, excluding principal residence and consumables.
As of 2010, there are 11 million people, globally, in this segment. Regionally, North America has the most people in this segment but for the first time the Asia-Pacific region has surpassed Europe.
The U.S., Japan and Germany account for 53% of the HNWI population, however, this percentage has been decreasing as wealth is being created in the emerging and developing markets. Canada ranks 7th, behind France and just ahead of Switzerland.
In Japan, 80% of the HNWIs are over the age of 55. By contrast the percentage of HNWIs in the U.S. over the age of 55 has been decreasing and is now at 68%. This trend is even more pronounced elsewhere. For example in the Middle East, 56% of those countries HNWIs are under the age of 55. This trend could mean that services to HNWIs will need to be delivered in more technologically efficient ways.
Another trend is the seen in the area of women who now account for 27% of the global HNWI population. Within this segment there are huge regional differences. For example 37% of the U.S. HNWI population are women. Nevertheless, the global trend is on the rise.
Not dissimilar to the population at large, the #1 concern for the HMWI segment is the impact of the economy on their goals. Interestingly, the #3 concern of the HNWI segment is that the next generation are not adequately managing their inheritance.
In terms of priroities for this group, capital preservation ranked #1. Succession planning and specialized advice ranked highly as well.

About Paul Fensom
Scotiatrust offers a full range of estate, trust and philanthropic advisory services designed to meet a client’s personal objectives and designed to evolve across a variety of life stages and financial events. Email: