With the global wealth management market forecast to grow from $4.7 trillion in 2023 to $17.6 trillion by 2032 at a 3.4% CAGR, this post breaks down the key industry statistics behind what is driving expansion, digital adoption, fees, returns, and the compliance and technology pressures shaping planning decisions.
Key Takeaways
- 3.4% CAGR projected for the global wealth management market from 2024 to 2032
- $4.7 trillion global wealth management market size in 2023
- $17.6 trillion global wealth management market size by 2032
- 62% of investors prefer to complete account servicing activities online rather than by contacting a representative
- 59% of UK adults used online banking in the past week (drives digital wealth account access)
- 60% of HNW investors used digital channels to research investment products in 2023 (survey)
- Top 1% of US wealth holders own 26.6% of total wealth (2022)
- Mean annual fee charged by wealth management robo/managed accounts averaged 0.50% in 2023 (industry benchmarks)
- Average client retention in wealth management was 88% in 2023 (reported benchmark)
- SEC Rule 206(4)-1 (Investment Advisers Act compliance rule) requires advisers to adopt policies and procedures with a reasonable level of detail
- SEC Form ADV Part 2B must be delivered to clients/ prospective clients for registered investment advisers
- The EU MiFID II requires firms to provide costs and charges disclosures under Article 24
- US mutual fund median expense ratio was 0.44% in 2023 (cost burden metric)
- US ETF median expense ratio was 0.22% in 2023
- In 2023, average account management fees for robo-advisors ranged from 0.25% to 0.50% (benchmark)
Global wealth management is set to grow to $17.6 trillion by 2032, driven by higher digital adoption and private wealth demand.
Market Size
13.4% CAGR projected for the global wealth management market from 2024 to 2032[1]
Verified2$4.7 trillion global wealth management market size in 2023[1]
Verified3$17.6 trillion global wealth management market size by 2032[1]
Verified41.2% of global GDP is estimated to be invested in private wealth management services (as of 2022)[2]
Directional5$1.3 trillion expected market size for the global family office services market by 2032[3]
Single source6Family office services market size of $0.6 trillion in 2023[3]
Verified7Japan household financial assets were ¥2,000 trillion in 2023 (Bank of Japan household sector statistics)[4]
Verified8Global discretionary wealth management AUM by top firms grew to $11.8 trillion in 2023[5]
Verified9World Wealth Report 2024 estimates global financial wealth was $144.0 trillion in 2023[5]
Directional10World Wealth Report 2024 estimates global investable assets were $100.3 trillion in 2023[5]
Single source11Global wealth management market reached $4.7 trillion in 2023[1]
Verified12Number of financial advisers (US) was 252,000 in 2023 (BLS occupational employment for personal financial advisors)[6]
Verified13US occupational employment (personal financial advisors) is 286,030 (May 2023)[7]
VerifiedMarket Size Interpretation
With the global wealth management market set to grow from $4.7 trillion in 2023 to $17.6 trillion by 2032 at a 3.4% CAGR, and discretionary wealth management AUM hitting $11.8 trillion in 2023, the sector is clearly in a long-term expansion phase driven by rising private wealth needs.
User Adoption
162% of investors prefer to complete account servicing activities online rather than by contacting a representative[8]
Verified259% of UK adults used online banking in the past week (drives digital wealth account access)[9]
Verified360% of HNW investors used digital channels to research investment products in 2023 (survey)[5]
Verified438% of HNW investors opened at least one new account digitally (2023 behavior in survey)[5]
Directional546% of adults in the US have created an advance directive or living will (important for estate planning adoption)[10]
Single source635% of US adults have a will (survey)[10]
Verified727% of US adults report having a trust (survey)[10]
Verified837% of Australians reported having a will (survey)[11]
VerifiedUser Adoption Interpretation
With 62% of investors favoring online servicing and 60% of HNW investors using digital channels to research products in 2023, the data shows wealth planning is moving decisively toward digital adoption, even as estate planning coverage remains uneven at 35% of US adults having a will and only 27% reporting a trust.
Performance Metrics
1Top 1% of US wealth holders own 26.6% of total wealth (2022)[12]
Verified2Mean annual fee charged by wealth management robo/managed accounts averaged 0.50% in 2023 (industry benchmarks)[13]
Verified3Average client retention in wealth management was 88% in 2023 (reported benchmark)[5]
Verified4S&P 500 median return over rolling 10-year periods was 12.0% nominal (benchmarking wealth returns)[14]
Directional5US household debt service ratio was 7.0% in 2023 (impacts disposable income for planning)[15]
Single source6US savings rate averaged 4.5% in 2023 (affects contribution capacity for wealth planning)[16]
Verified7Inflation averaged 4.1% in 2023 (planning assumptions impact)[17]
Verified8NASDAQ Composite annual total return was 54.2% in 2023 (wealth performance backdrop)[18]
Verified9Bloomberg US Aggregate Bond Index returned -1.2% in 2023 (wealth allocation performance backdrop)[19]
Directional10US 3-month Treasury yield averaged 5.2% in 2023 (risk-free rate assumption for planning)[20]
Single source11US 10-year Treasury yield averaged 3.7% in 2023[21]
Verified12S&P 500 price return in 2023 was 24.2% (market performance metric used in planning projections)[22]
Verified13Average trading cost (implementation shortfall) averaged 40 bps for institutional investors (study benchmark)[23]
Verified14US mutual fund average expense ratio was 0.44% in 2023 (performance cost metric)[24]
Directional15US ETF average expense ratio was 0.22% in 2023[25]
Single sourcePerformance Metrics Interpretation
With the top 1% holding 26.6% of total wealth and typical wealth management fees staying around 0.50% while returns faced a mixed backdrop, including a 54.2% NASDAQ gain and a -1.2% bond year, the biggest takeaway is that clients are concentrating wealth and charging relatively modest management costs even as markets deliver highly uneven performance.
Industry Trends
1SEC Rule 206(4)-1 (Investment Advisers Act compliance rule) requires advisers to adopt policies and procedures with a reasonable level of detail[26]
Verified2SEC Form ADV Part 2B must be delivered to clients/ prospective clients for registered investment advisers[27]
Verified3The EU MiFID II requires firms to provide costs and charges disclosures under Article 24[28]
Verified4FinCEN’s Beneficial Ownership filing deadlines drove BO reporting for many entities by 2024-01-01[29]
DirectionalIndustry Trends Interpretation
Across SEC and EU regimes, firms are tightening client disclosure and compliance expectations, with four major rules driving documentation and reporting from SEC Form ADV Part 2B delivery to MiFID II costs disclosures and Beneficial Ownership filings, many of which were pushed to meet the 2024-01-01 deadline.
Cost Analysis
1US mutual fund median expense ratio was 0.44% in 2023 (cost burden metric)[24]
Verified2US ETF median expense ratio was 0.22% in 2023[25]
Verified3In 2023, average account management fees for robo-advisors ranged from 0.25% to 0.50% (benchmark)[30]
Verified4Implementation shortfall averaged 40 bps for institutional orders (transaction cost benchmark)[23]
Directional5$3.1 billion global regtech market size in 2023 (compliance technology spending proxy)[31]
Single source6$25.6 billion global regtech market size by 2032 (compliance technology spending proxy)[31]
Verified7$250 million average cost of data breaches in financial services in 2023 (industry benchmark)[32]
Verified8Financial sector average time to identify data breach was 279 days (2023 benchmark)[32]
Verified9Financial sector average time to contain a data breach was 82 days (2023 benchmark)[32]
Directional10Average charge for trust administration services ranged from $250 to $2,000 per year (US market benchmark)[33]
Single source11Estate planning attorney fees ranged from $1,000 to $5,000 for basic will packages in 2023 (market benchmark)[34]
Verified12Average probate attorney fees in the US were around 3% to 5% of estate value (market benchmark)[35]
Verified13Cloud spending: global public cloud services revenue reached $679.6 billion in 2024 (drives wealth-planning IT costs)[36]
VerifiedCost Analysis Interpretation
Even as mutual funds stay relatively costly at a 0.44% median expense ratio and ETFs at 0.22%, the fastest-growing pressure on wealth planning operations is technology and risk, with the global regtech market rising from $3.1 billion in 2023 to a projected $25.6 billion by 2032 while financial services still take 279 days to identify data breaches.
References
- 1globenewswire.com/news-release/2024/02/15/2825176/0/en/Wealth-Management-Market-to-Reach-17-6-Trillion-by-2032-at-a-3-4-CAGR-Data-Intelligence.html
- 31globenewswire.com/news-release/2024/01/12/2812312/0/en/RegTech-Market-to-Reach-25-6-Billion-by-2032-at-a-25-6-CAGR.html
- 2bis.org/publ/work536.pdf
- 3marketdataforecast.com/market-reports/family-office-services-market
- 4boj.or.jp/en/statistics/sj/sj.htm/
- 5capgemini.com/insights/research-library/world-wealth-report-2024/
- 6bls.gov/ooh/business-and-financial/personal-financial-advisors.htm
- 7bls.gov/oes/current/oes132011.htm
- 8jdpower.com/business/press-releases/2024-us-investor-investor-engagement-study
- 9ofcom.org.uk/__data/assets/pdf_file/0028/272129/uk-home-and-on-the-go-2024.pdf
- 10cdc.gov/nchs/data/databriefs/db456.pdf
- 11aihw.gov.au/reports/life-stages/estate-planning-survey
- 12wid.world/data/
- 13investmentcompany.org/research/2023-fee-report
- 24investmentcompany.org/research/mutual-fund-expense-ratios
- 25investmentcompany.org/research/etf-expense-ratios
- 14dqydj.com/sp-500-return-calculator/
- 15fred.stlouisfed.org/series/TDSP
- 16fred.stlouisfed.org/series/PSAVERT
- 17fred.stlouisfed.org/series/CPIAUCSL
- 20fred.stlouisfed.org/series/TB3MS
- 21fred.stlouisfed.org/series/DGS10
- 22fred.stlouisfed.org/series/SP500
- 18sec.gov/edgar/search/
- 30sec.gov/news/press-release/2023-152
- 19bloomberg.com/quote/agg:ind
- 23papers.ssrn.com/sol3/papers.cfm?abstract_id=3810212
- 26ecfr.gov/current/title-17/chapter-II/part-275/section-275.206(4)-1
- 27ecfr.gov/current/title-17/chapter-II/part-279/section-279.1
- 28eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014L0065-20240207
- 29fincen.gov/boi
- 32ibm.com/reports/data-breach
- 33americanbar.org/groups/real_property_trust_estate/resources/estate-trust/annual-fees/
- 34americanbar.org/groups/public_education/resources/law_related_education_network/estate-planning-costs/
- 35americanbar.org/groups/real_property_trust_estate/resources/probate-fees/
- 36gartner.com/en/newsroom/press-releases/2024-07-10-gartner-says-worldwide-end-user-spending-on-public-cloud-services