India’s financial wealth has been growing since 2015. In fact, the financial wealth of India has grown by 11% per annum between 2015 and 2020 to reach $3.4 trillion and is to continue to grow by 10% per annum to $5.5 trillion by 2025, shows a report released by the Boston Consulting Group (BCG).
The report reveals that India is expected to lead growth in financial assets in terms of percentage.
Here are some key highlights of the report:
- Retirees, one of the world’s fastest-growing demographics, are an appealing market for wealth managers
- Globally, individuals over 65 own $29.3 trillion in financial assets accessible to wealth managers. That figure will grow at a CAGR of close to 7% over the next five years
- By 2050, 1.5 billion people globally will fall into the 65+ category, representing an enormous source of wealth
- Liabilities are expected to grow by 9.4% per annum to $1.3 trillion by 2025
- Bond market are expected to grow the fastest with 15.1% per annum
- Life insurance & pensions will be third largest asset class in the future
- North America, Asia (excluding Japan), and Western Europe will be the leading generators of financial wealth globally, accounting for 87% of new financial wealth growth worldwide between now and 2025.
- China is on track to overtake the US as the country with the largest concentration of ultra HNIs by the end of the decade
- The faces of the ultra HNIs are changing too, with the rise of the next-generation segment. These individuals, between 20 and 50 years of age, have longer investment horizons, a greater appetite for risk, and often a desire to use their wealth to create positive societal impact as well as earn solid returns. Many wealth managers are not yet ready to serve these new ultra HNIs
Anna Zakrzewski, MD and Partner, BCG said, “High-growth markets represent a massive opportunity but wealth managers must build a genuine understanding of local differences and also key demographic changes. For example, women now account for 12% of ultra HHIs, most of whom are based in the US, Germany, and China. The next-gen segment is also going to be an influential driver of future growth in the next decade or so. Wealth managers should offer a personalized service in order to effectively capture the next wave of growth.”
